Dividend Growth Investing : long term investment

TAMPA, Fla. - July 10, 2015 - PRLog -- Perpetual Dividend Raisers are stocks that raise their dividends every year. Some companies have been giving shareholders annual dividend raises for decades.

Dividend geeks love both dividend yield and dividend growth!

Investing in companies that raise their dividend payment each year (Perpetual Dividend Raisers) is a long-term investment strategy known as Dividend Growth Investing where you gradually build a sustainable and growing passive income stream by investing in companies with competitive advantages and a history of raising their dividend every year.

The strategy is simple and powerful. With a long-term horizon when you reinvest dividends that are also growing larger every year, you will create a powerful compounding money machine!

Selection Criteria: 1) 10+ years consecutive dividend increases; 2) Competitive advantage; 3) Minimum 2% dividend yield (3%+ preferred); 4) Minimum 8% dividend growth rate; and 5) Stable payout ratio

Perpetual Dividend Raisers are a great way to get some income today and an even larger “paycheck” for your heirs later.

Stocks that raise the dividend every year have never been down over 10-year periods, not including the Great Depression, for which the data was not available. But that does include the Great Recession. In fact, if you sold at the end of 2008, right near the bottom of the market, you still made 40%.

Stocks, particularly Perpetual Dividend Raisers, are not as risky as people think when you’re talking about the long term. If you have a 10-year or longer horizon, it’s riskier not to be in stocks as your money won’t grow and keep up with rising prices.

With some annuities, your income could increase if the market cooperates. With a portfolio of Perpetual Dividend Raisers, it doesn’t matter what the stock market is doing as long as the companies are raising the dividend. And remember, the dividend is not tied to the stock price.

Many companies raised the dividend in 2008 and 2009 despite sell-offs in their shares. If the companies are generating enough cash flow and have a track record of raising dividends, there’s a very good chance they’ll do so again.

Any financial strategy should be discussed with your advisor.(www.MintcoFinancial.com) (http://www.MintcoFinancial.com)