Different types of dividend Policy

Different types of dividend Policy

The winner by far, though, were the companies that initiated a dividend and the companies that grew their dividend over time. 

 

The $100 invested in the dividend initiators and growers produced $14,405 in wealth by the end of 2021.

 



Source: Ned Davis Research

 

Wealth with reduced price volatility is another dividend-stock advantage.

 

The dividend initiators and growers led the charge again. They produced the highest returns while displaying the lowest price volatility. 

 

 













Source: Ned Davis Research

 

When we delve into the subject, we find that the dividends are an effect, not a cause.

 

Consistent dividend growth is the result of coalescing fundamentals.

 

Consistent dividend growth is underpinned by a strong balance sheet and exceptional entrepreneurial instincts. The former enables the latter to profitably grow the business. Profit growth, in turn, leads to dividend growth. 


  • Apple (NASDAQ: AAPL)
  • Visa (NYSE: V)
  • Chevron (NYSE: CVX)
  • Celanese Corp. (NYSE: CE)
  • The Kroger Co. (NYSE: KR)

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