You’ve probably heard of the dividend investing strategy. Look for stocks that continually offer key dividend hikes, and that do so on a regular basis.
It is not always simple to find such stocks where you can go on buying shares that pay good, quality dividends and sit back to collect checks in the mail or through direct deposit to your brokerage account as you live off your passive income.
However, there are a few key stocks that continuously offer dividend hikes.
We recommend you own some of them. Did you know there are dividend investors who only practice dividend growth investing strategy?
Basically, these investors are building a collection of great companies that increase their dividends at a rate equal to or substantially in excess of inflation each year. The also are holding onto positions for long periods of time, often decades, to take advantage of deferred taxes.
We recommend you buy a few of them as it helps to diversify across different industries and sectors so your dividend stream isn’t too reliant upon a single area of the economy such as oil, banking, or mining. Finally we like to make sure the dividend growth is being financed by higher levels of real underlying profit, though in some cases, expanding debt is allowed for.
Some of our favorite dividend investing growth stocks are about to offer a quarterly dividend hike next week:
Boeing (NYSE:BA) to $1.58 from $1.42, Franklin Resources (NYSE:BEN) to $0.22 from $0.20, Eli Lilly (NYSE:LLY) to $0.54 from $0.52, Realty Income (NYSE:O) to $0.2125 from $0.2120, Pfizer (NYSE:PFE) to $0.34 from $0.32, and AT&T (NYSE:T) to $0.50 from $0.49 and WD-40 (NASDAQ:WDFC) to $0.54 from $0.49.
While this is only a small sample of some of our favorite dividend stocks, owning a few of them, such as BA, T and O, are a highly recommended strategy.
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