➡️ What is Dividend Growth Investing?
Dividend Growth Investing (DGI) is an active investing strategy which involves buying and holding a portfolio of shares. Dividend growth investors build a basic investment portfolio by looking for companies with a track record of paying reliable and growing dividends year on year.
The theory is that companies which meet these strict conditions will be:
- Stable and mature businesses
- Likely to increase their dividends each year
- Less likely to cut their dividend in the future
This makes them attractive to investors. Who doesn’t want to own a company with a good track record of steadily increasing their returns to shareholders?
Receiving dividends is one of the two key reasons why people invest in shares. The other being capital gains from any increase in the share price.
Dividend growth investors look at their portfolio as an income-generating machine. They measure their success, not on its latest market value, but by the value of dividends it pushes into their bank account each year.
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*Remember this isn't investment advice, just general information only. Any investing involves risks.*
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