In the backtest I chose investments that were similar to the companies I invested in today, namely dividend aristocrats
which increase their dividends every year.
Not exact matches
If these
increases occur, this will be the sixth consecutive
year in
which Telus has
increased its divided by 10 per cent or more in what Entwistle calls a multi-
year dividend growth program,
which remains a priority for the company.
One way small investors can imitate that approach: Buying the ProShares S&P 500
Dividend Aristocrats ETF (NOBL),
which owns shares in companies that have
increased dividends for at least 25 consecutive
years.
Does it go to financial engineering, i.e.,
increased dividends and buybacks,
which has been the game in the last several
years?
«We believe the bogey for investors is a 15 percent
increase to Apple's total reported capital return number (shares repurchase plus past
dividends),
which would imply a $ 150 billion headline number, up from $ 130 billion announced last
year,» said Gene Munster, an analyst at Piper Jaffray, in a recent note.
These risks and uncertainties include: Gilead's ability to achieve its anticipated full
year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may
increase the amount of discount required on Gilead's products; an
increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles
which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers
which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay
dividends or complete its share repurchase program due to changes in its stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).
Given this, we expect the rate of
dividend growth to moderate beyond this
year, with
increases likely tracking closely to earnings growth,
which figures to average 8 % -10 % annually between 2018 and 2020.
We have
increased our
dividends by 100 % over the last 3
years,
which speaks to the consistent cash flow we generate and our intent to return more capital to shareholders through
dividends.
In fact, PepsiCo has raised its annual payout in each of the last 45
years,
which makes the company a «
Dividend Aristocrat,» a company with at least 25 consecutive years of annual dividend in
Dividend Aristocrat,» a company with at least 25 consecutive
years of annual
dividend in
dividend increases.
The company has paid an
increasing dividend for 21 consecutive
years,
which obviously stretches right through the most recent shock to energy prices.
P&G turned 15.7 % of its sales into earnings last
year,
which helped fund its 61st consecutive annual
dividend increase.
The company's
dividend growth streak of eight consecutive
years appears to be just warming up, with a payout ratio of 29.5 % all but guaranteeing strong future
dividend increases (
which should drive some of that near - term and long - term total return).
Many investors are familiar with the
dividend aristocrats
which are companies with at least 25 consecutives
years of
dividend increases.
However, I will tend to favor those
which have been paying
increasing dividends year after
year for more than a decade.
Wolters Kluwer has a progressive
dividend policy under
which the company aims to
increase the
dividend per share each
year.
FINANCIAL MAIL - June 14 - Dating entrepreneur Ross Williams has pocketed a # 725K share of the payout,
which was a fall from the previous
year's
dividend of # 2.5 M. His company Global Personals,
which last month changed its name to Venntro Media Group,
increased its turnover by # 2M to # 44.3 M for the
year to August 31, 2014 but pre-tax profits fell from # 4.1 M to # 2.3 M.
If the performance of the investment for a particular
year is well, the insurance company will pay out a tax - sheltered
dividend to you,
which can be used to
increase coverage.
One of the most gratifying things about compiling the
Dividend Champions spreadsheet is witnessing the steady stream of dividend increases, which are announced throughout the year, in wave after wave, by the Champions, Contenders, and Chal
Dividend Champions spreadsheet is witnessing the steady stream of
dividend increases, which are announced throughout the year, in wave after wave, by the Champions, Contenders, and Chal
dividend increases,
which are announced throughout the
year, in wave after wave, by the Champions, Contenders, and Challengers.
This is a total cumulative return of 111 % ($ 11,090 / $ 10,000 = 1.11 = 111 %),
which represents a compound annual return of 7.75 %.1 Without considering
dividends, $ 10,000 would have grown to about $ 16,000 (due to the 60 % price
increase), so the 10
year cumulative return was
increased by more than $ 5,000 by reinvesting all
dividends.
Exxon Mobil is a
Dividend Aristocrat, which means it has increased its dividend annually for at least the last 2
Dividend Aristocrat,
which means it has
increased its
dividend annually for at least the last 2
dividend annually for at least the last 25
years.
You can also invest in a
Dividend King,
which are stocks that have
increased dividends for at least 50
years.
Not only are we comfortable with Pepsi's ability to continue paying its
dividend we also expect it will
increase the divvy by 7 % per
year for the foreseeable future,
which gives
dividend growth investors a nice little kicker.
Such a portfolio would return about $ 19,000 a
year, a little less than the single - life pension option but alternatively, her stocks would give her
years worth of growth as well as the annual
dividend income
which should
increase over the
years.
For example, an ETF may use a methodology that selects only companies
which have
increased dividends over the last five
years, or it may alter the weighting of stocks in the portfolio according to certain rules.
Now that she's older, she's sticking to more conservative investments such as
dividend aristocrats,
which is a group of companies that are a member of the S&P 500 and have a minimum of one
dividend increase annually for at least the last 25
years in a row.
They just recently
increased their
dividend by 10 % and with this recent acquisition
which almost doubles their market cap, this trend should continue for
years to come.
Relatively low but not surprising given an 8
year bull market that has
increased stock prices, as well as the current low interest rate environment (
which means that companies don't need to pay high
dividends to attract investors).
VLO has
increased their annual
dividend for 5 straight
years which is good enough for 0.5 points out of 1.
Here is a list of
Dividend Kings,
which are stocks that have been
increasing their
dividends for over 50 consecutive
years.
It was recently upgraded to «Champion» status from «Contender» status,
which is reserved for companies with
dividend increases for the past 10 - 24
years.
It is not a CCC member,
which requires a 5 -
year streak of
dividend increases.
Though funds that employ a long - term investment strategy may pay qualified
dividends,
which are taxed at the lower capital gains rate, any
dividend payments
increase an investor's taxable income for the
year.
Following up on that theme
which generated plenty of positive discourse, I will in this article take a holistic view of my overall portfolio to determine how well my
dividend growth has been
increasing over the
years.
In Class of 2009, S&P selected 52 stocks from the index
which have
increased their
dividends every
year for at least 25 consecutive
years.
The makeup of the fund is unlikely to change immediately, however: Since the rules of the index upon
which SDY is based require 20 consecutive
years of
dividend increases, the reclassification will have no effect on eligibility of particular REITs for future inclusion.
In fact, they just very recently announced a 17.6 %
increase to their
dividend, the 14th consecutive
year in
which they've raised their
dividend.
The company's
dividend growth streak of eight consecutive
years appears to be just warming up, with a payout ratio of 29.5 % all but guaranteeing strong future
dividend increases (
which should drive some of that near - term and long - term total return).
The purpose of the
Dividend Contenders List is to identify all U.S. companies which have increased their dividend for 10 years or more, but less than 2
Dividend Contenders List is to identify all U.S. companies
which have
increased their
dividend for 10 years or more, but less than 2
dividend for 10
years or more, but less than 25
years.
Incidentally, the various IFRS - reported NAV companies whose common stocks are in TAM portfolios do pay modest
dividends,
which have been
increasing modestly
year by
year for most of the TAM holdings.
A popular tracker of these type of stocks is the
dividend aristocrats,
which are companies that have
increased their
dividends over the last 25
years.
Apple famously held out from doing either for
years under Steve Jobs, and only in the last few
years started doing both - a large
dividend and a share buy - back
which increases the value of remaining shares (as EPS then goes up with fewer shares out there).
In a quiet week, only this medical device manufacturer -
which has
increased dividends for 22
years - announced a
dividend payout.
Many investors are familiar with the
dividend aristocrats
which are companies with at least 25 consecutives
years of
dividend increases.
Proctor & Gamble (PG) is a multinational consumer goods company,
which has paid an
increasing dividend every
year for the last 61
years.
We note also that the Tax Reform bill will likely
increase earnings for many companies next
year,
which will likely reduce the
dividend payout ratio in the near term and give companies even more room to raise
dividends.
You'll find almost 800 examples via David Fish's
Dividend Champions, Contenders, and Challengers list, which is an incredible resource that contains information on all US - listed stocks with at least five consecutive years of dividend in
Dividend Champions, Contenders, and Challengers list,
which is an incredible resource that contains information on all US - listed stocks with at least five consecutive
years of
dividend in
dividend increases.
Linear Technology,
which manufactures digital hardware like these regulators, has
increased dividends for 23
years.
Telus,
which is expected to report on May 10, is currently trading at a
dividend yield of 4.4 % and has a long history of semi-annual
dividend increases, with a seven -
year compound annual growth rate of 11.4 %.
Fortunately, thanks to
increased foreign weapons sales, a recovery in corporate jet sales that is currently underway, as well as a very strong history of buybacks (
which lowers the payout ratio and allows for longer, stronger
dividend growth), General Dynamics has potential to generate 8 % to 10 % bottom line growth in the coming
years.
The most recent
dividend increase was earlier this
year, in
which OKE
increased the quarterly payout from $ 0.33 per share to $ 0.36 per share.