Dividends are a vital part of many investors’ portfolios, providing a steady stream of income from the companies they own. In recent years, dividend increases have been on the rise, with the total amount paid out by companies worldwide reaching a record $1.75 trillion last year.
But what drives these increases? Companies may boost dividends due to improved cash flow, a shift in strategy away from growth, unfavorable financing rates, or to attract more investors. Dividend-dependent investors may also be attracted to companies that maintain a consistent dividend payout schedule.
Recently, several companies have raised their dividends, including Flowco Holdings (FLOC), Western Digital (WDC), VeriSign (VRSN), Smithfield Foods (SFD), and others. These increases can be a positive sign for the company’s financial health, but may also indicate slower growth potential.
For investors considering adding these stocks to their portfolios, it’s essential to analyze the underlying reasons behind the dividend hike. If the company is still fundamentally strong, with a solid investment strategy, then the rising dividend might be an attractive feature.
To help identify the most promising candidates, we ran our analysis on the recent dividend raisers and identified three stocks that stood out as “Buy” recommendations:
* Flowco Holdings Inc. (FLOC)
* National CineMedia, Inc. (NCMI)
* JAKKS Pacific, Inc. (JAKK)
These companies have shown strong growth potential, solid financials, and a commitment to maintaining or increasing their dividend payouts. As always, it’s crucial to review your personal investment criteria and portfolio goals before making any decisions.
Note: The list of Dividend Aristocrats can be found on MarketBeat at https://www.marketbeat.com/dividends/aristocrats/.
Source: https://www.cabotwealth.com/daily/dividend-stocks/3-stocks-with-rising-dividends