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The Impact Of Dividend Increases Through March Of 2019

Published Thu, 16 May 2019 04:02:58 -0400 on Seeking Alpha

When talking about dividend increases, this is us talking about dividend investing, at its finest! Given the first quarter-end had recently passed, I wanted to reflect on what occurred over the last 3 months. This is not any old reflection, but specifically about dividend increases and their impact on my portfolio this year. Now that tax reform was 2018 news, how are the dividend increases stacking up this year?
Why dividend increases matter
Why would dividend increases matter to my investment journey? The next section will describe the importance of dividend increases. In short, dividend increases are important, as they define the health of a company. Further, dividend increases offset the increase in cost of goods (food, energy, shelter, etc.), over a span of time. This is what you hear when "inflation" is discussed.
Why do dividends increasing in the future matter from companies that we own? When the price of goods are increasing, don't you want your income to continue to grow, in order to offset or "trump" the inflation? Now, as the community knows, uninterrupted dividend increases are a quality we look prior to investing in a company. We don't just invest for current income, but we are investing for a larger, future income too! For example, Johnson & Johnson (NYSE: JNJ) increased their dividend 7.15% back in April. The 7.15% dividend increase outpaces the rate of inflation, which has been stated at 2.3% over last year.
Does this start to make sense now? Buying... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
UNITED PARCEL SERVICE 96.17   18.4 5.24 3.84 3.86
T. ROWE PRICE GROUP 102.79   13.6 7.57 3.04 2.88
PEPSICO 130.07   14.7 8.86 3.82 2.85


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