Value and yield… two of the most powerful concepts in investing. Value comes in the form of buying into stocks that the market trades at a discount to its true value, and yield comes in the form of dividend payments to shareholders.
Some investors solely seek out value, while others seek out yield.
Dividend hunters have to constantly seek yield in the market, but they have to keep in mind that current yields are not good enough, and a priority should be given to stocks that proven track record of dividend increases.
Companies that boost their dividends each year are attractive for multiple reasons. For one they tend to be less volatile than the overall market because traders realize a company would not be able to grow its dividend unless the company’s underlying business warranted doing so.
Dividend increases also give the market confidence in the stock because it illustrates that the company’s management team has a positive outlook on the future of the company or else it would not be able to justify the annual increases.
The summer months tend to slow down in terms of dividend increases, but there are plenty of big name companies expected to lift their distributions. Here are five stocks that will be boosting their dividends this summer.