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Dividend Growth Investor
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I write about dividend growth stocks on my website I am mostly a buyer of high quality dividend stocks, with solid competitive advantages. My holding period is forever, as long as the dividend is at least maintained. I tend to concentrate my efforts on stocks... More
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  • What Makes Consumer Staples The Perfect Dividend Growth Companies?

    Most consumer staples are also called defensive companies, because their earnings and dividends do not decline by much during recessions. During economic recoveries however, their earnings and dividends tend to increase also. Because they are mostly mature and large companies, growth expectations are low, which usually leads to low valuations.

    The thing that truly appeals to me in consumer staples includes the recurring nature of their revenues, which are generated from a wide number of products that customers love and buy regularly. Most consumer staples offer products with strong recognizable brands, for which customers are willing to pay a slight premium for. A customer, who is used to Gillette razorblades and shaving crème or foam for years, is not going to downgrade their experience merely in order to save a few dollars, but end up with cuts all over their faces. If you have used Colgate toothpaste for years, chances are very high that you would keep purchasing a tube every month or so. The nature of the products that consumer staple companies offer, satisfy basic human needs, which are satisfied only when the branded product is exhausted. Once it is all used up, the consumer needs to go ahead and purchase the product again, thus ensuring a repeatable stream of sales for the company for decades to come from each consumer it wins over.

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    Apr 30 9:50 AM | Link | Comment!
  • Ross Stores (ROST) Dividend Stock Analysis

    Ross Stores, Inc. (NASDAQ:ROST), together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dds DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions. Ross Stores is a dividend achiever, which has raised dividends for 21 years in a row.

    The most recent dividend increase was in February 2015, when the Board of Directors approved a 17.50% increase in the quarterly dividend to 23.50 cents/share. The company's largest competitors include TJ Companies (NYSE:TJX), Kohl's (NYSE:KSS) and Macy's (NYSE:M).

    Over the past decade this dividend growth stock has delivered an annualized total return of 21.90% to its shareholders. Future returns will be dependent on growth in earnings and starting dividend yields obtained by shareholders.

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    Apr 28 12:35 PM | Link | Comment!
  • Four Quality Dividend Machines Hiking Distributions

    Over the past week, there were four quality dividend paying companies, which announced that they are raising dividends for their shareholders. As a long-term shareholder, I like it when I am essentially paid to hold companies. I like it even better when that company I own regularly increases the amount of cash they send my way. I also view the near term rate of change in dividend hikes as a management indication about their expectations for earnings growth. One of the easiest ways for a time-starved investor like myself to monitor those dividend hikes on companies I own is my broker Interactive Brokers. I receive notifications about dividend payments that were just approved, and quarterly results that are about to be released.

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    Apr 27 3:39 PM | Link | Comment!
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