The markets continue to struggle finding direction with all eyes on the Euro Zone, but if we peek past those headlines some very positive things continue to develop on the dividend growth front. Within the past three months alone, just shy of 30% of our Core Dividend portfolio holdings have given our clients pay raises. The extent of these raises vary, but they are all in the right direction – up. Over half of the payout increases exceeded 15%, with two companies posting stellar bumps of 25% or more. The smallest increase amounted to just 1%, but even that doesn’t appear too stingy when we get to add it to an already very generous dividend yield of 5.5%. The beautiful thing is that dividends are tangible, paid in cash and go straight into investors wallets. It is hard to overestimate the impact this kind of growth has over time. With the 10 year US Treasury Note yielding just 1.91% as of today’s close – with no opportunity for income growth – high quality stocks with reliable and growing dividends appear all the more attractive.
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