For investors trying to plot a long-term strategy, it’s critical to understand the power and significance of dividends, and to spot those companies that provide a virtually unending stream of payouts.
Markets go up and go down, but finding those long-term dividend payers that can get you through the tough times with steady income and just as important, the promise of continued increases to that steady income, is reassuring and, well, profitable!
But don’t go around getting confused between companies that steadily raise dividends but might be in difficult businesses that might squeeze your income down the road. As an example, let’s take Walgreen (NYSE:WAG), a tried-and-true dividend payer that has made it onto InvestorPlace‘s list of Dependable Dividend Stocks.
In June, the venerable pharmacy company raised is annual dividend by 22.20% to $1.10 per share, and its 10-year dividend growth rate has been 18.90% per year. Furthermore, Walgreen has raised its distribution for 37 consecutive years. (more)
I would like to say that dividends are payments made by a company to its shareholders. When a company earns a profit, that money can be put to two uses: it can either be re-invested in the business (called retained earnings), or it can be paid to the shareholders of the company as a dividend.
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