However, as an investor in dividend growth stocks, it is not enough to simply sustain the dividend — I want to own companies that are capable
of sustained dividend growth.
If a company aims to
sustain dividend growth over the years and decades, then the business needs to be strong enough to generate consistently growing cash flows under all kinds of conditions.
I'm hoping that the recent tax cut to corporations will translate into more dollars for investors and boost XOM's ability to remain a stable company and
sustain its dividend growth in the future.
This is why it is important to find companies that will be able to
sustain their dividend growth.
This is why it is important to find companies that will
sustain their dividend growth.
- Keep in mind the general estimation that the total rate of return will be equal to the dividend yield plus
the sustained dividend growth rate.
One tool that can help you determine if a company can
sustain its dividend growth is to look at the payout ratio.
One tool that can help you determine if a company can
sustain its dividend growth is to look at the payout ratio.
- Keep in mind the general estimation that the total rate of return will be equal to the dividend yield plus
the sustained dividend growth rate.