The summer months tend to be a little slow on the news front, as a larger number of analysts take their annual vacations, and economic news begins to dry up for a couple months. One thing we can count on however, are more dividend increases.
Dividend stocks have been hot so far in 2016, mainly a result of the Federal Reserve signaling reluctance to raise interest rates as quickly as was previously expected.
The general anticipation at this time is that the Federal Reserve will not lift rates too much over the next couple of years. As a result yield hunters have nowhere else to turn other than dividend-paying stocks in search of the income that they are after.
Dividend reinvestment can be a powerful tool in growing a portfolio over the long-term, and if you can guarantee that once a year your distributions will rise slightly higher, the growth impact will be even stronger, which is why I like to seek out those stocks that are likely to continue growing dividends in the future.
Not only are dividends a tool for growing wealth, they signal management strength as well. A company would not be able to continue paying dividends, much less raise them each year, unless management was doing a good job directing the company.
Let’s take a look at a handful of companies that are likely to boost their dividends through the remainder of the summer.