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Dividend stars

Here are some companies that have paid increasingly higher dividends in the last five years

Here are some companies that have paid increasingly higher dividends in the last five years

Dividends have their own aura. While capital appreciation in stocks is what most investors crave for, nobody minds good dividends. Frequently, you will find someone who has held onto a stock for many years and now the dividends alone are more than the invested capital! Some investors believe that dividends are the only 'real' income from owning stocks as capital appreciation is not in their hand.

But for dividends to turn magical, they should be increasing with time. As the profits of a company rise, it should also distribute more to its shareholders. Stagnant dividends don't contribute meaningfully to wealth creation.

The table below mentions some dividend stars - companies whose dividends per share and dividend-payout ratios have gone up in at least four of the last five years. The dividend-payout ratio tells us the per cent of profits distributed as dividends.

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