The phrase
"dividend growers" refers to companies that consistently increase the amount of money they pay out to their shareholders, known as dividends. These companies have a history of raising their dividend payments over time, which can be appealing to investors looking for regular income.
Full definition
We believe dividend stocks have the potential to remain attractive on this front, but a focus
on dividend growers may be prudent going forward.
You see, if you're investing in high -
quality dividend growers, your starting yield will likely be relatively low (around 2 % to 3 %).
Case - in - point: a handful of today's
best dividend growers don't offer much in the way of current income.
There are some conditions — and clear distinctions — that may set
dividend growers apart from other dividend stocks in today's market.
There are some conditions — and clear distinctions — that may
set dividend growers apart from other dividend stocks in today's market.
Much of the potential return advantage small -
cap dividend growers have over other small caps can be attributed to quality.
The
high dividend growers are just the opposite: They are trading one standard deviation lower, or cheaper, than they usually do.
So while the market as a whole might be heading toward a dividend - lean environment, there are still great opportunities to invest in today's
fastest dividend growers.
This can be a problem if you're already in or nearing retirement and you're looking for safe, high income from
established dividend growers.
Many — perhaps even most — focus on dividend growth, figuring if their holdings are
reliable dividend growers it also will move the needle on total return.
These features have generally
enabled dividend growers to withstand repeated market turmoil and still deliver strong returns with lower volatility.
Our 10 - year analysis of effective yields makes a compelling case for the yield potential
of dividend growers.
We believe dividend stocks have the potential to remain attractive on this front, but a focus
on dividend growers may be prudent going forward.
The
high dividend growers are just the opposite: They are trading one standard deviation lower, or cheaper, than they usually do.
Best dividend growers are defined as companies that have the longest track records of consecutive dividend growth.
And, learn how advisors are using ProShares
Dividend Growers ETFs like NOBL and REGL to position portfolios for volatility, rising interest rates and inflation.
In particular, Christian Magoon of Amplify Investments recommended international dividend growth stocks, featuring ProShares MSCI
EAFE Dividend Growers ETF (EFAD) as a way to gain exposure to those stocks.
ProShares MSCI
Europe Dividend Growers ETF (EUDV) tracks the MSCI Europe Dividend Masters Index, which holds stocks of 25 or more large - and mid-cap companies that have boosted dividends for at least 10 consecutive years.
Stephen Takacsy, chief investment officer at Montreal - based Lester Asset Management, also looks for long -
term dividend growers for his clients» RRSPs.
Now, as many investors worry about a global growth slowdown, rising rates and higher volatility in U.S. equity markets,
dividend growers offer potential opportunities due to their healthy balance sheets, as well as better valuations, and lower volatility.
High - dividend stocks have
outperformed dividend growers in the past year, but our analysis shows they historically have been vulnerable to higher rates.
Defense contractor General Dynamics (GD, $ 199.62) is one of the newest members of the Dividend Aristocrats, having been added to the elite list of
dividend growers at the end of January 2017.