Dividend Kings Are Overrated

Aug. 30, 2024 7:30 AM ETAM, BX, EOG55 Comments

Summary

  • Dividend growth stocks can outperform the market, but long growth streaks don't guarantee better returns. Investors should dig deeper than labels.
  • Research shows abnormal returns diminish after a few consecutive dividend hikes. Beyond that, consistent growth offers no significant advantage.
  • Instead of focusing solely on Dividend Aristocrats or Kings, consider high-quality companies with strong fundamentals and growth potential.
  • Looking for more investing ideas like this one? Get them exclusively at iREIT®+HOYA Capital. Learn More »

Goldene Krone isoliert auf schwarzem Hintergrund. Vektor-Illustration

Philip Hoeppli/iStock via Getty Images

Introduction

To be honest, I went with a provocative title. But I didn't use clickbait because we have a serious topic to discuss: dividend growth consistency. In fact, I would argue that this is one of the most important topics

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This article was written by

43.21K Followers

Leo Nelissen is an analyst focusing on major economic developments related to supply chains, infrastructure, and commodities. He is a contributing author for iREIT®+HOYA Capital.

As a member of the iREIT®+HOYA Capital team, Leo aims to provide insightful analysis and actionable investment ideas, with a particular emphasis on dividend growth opportunities. Learn More.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of DE, AM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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