Give Yourself a Raise And Grow Your Dividend Income

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• Welcome to Dividend Stocks Research Your premier
  site for Rankings and Reviews of the best
  dividends stocks around. For more info on
  dividend stocks visit our website
• DividendStocksResearch.com

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• Hi, My name is Aaron and Im with Dividend Stocks
  Research, and today were reviewing our recently
  published article

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• Give Yourself a Raise And Grow Your Dividend
  Income

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• Dividends are good. Theyre just like paychecks
  that provide regular income.
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• But dividends are even better when they grow. So
  when you look at a dividend stock to invest in,
  look for a stock that will keep giving you a
  raise for years to come.

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• Heres how.
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• The key to growing dividend income isnt driven
  by which stocks you invest in. Its driven by
  your strategy, and your discipline as an
  investor.
•  

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• The simple key is to create a way where you can
  regularly save. Even if you are in the early
  stage of retirement, putting a modest amount of
  money into your dividend stock portfolio each
  month will fuel income growth as you move into
  your later retirement years.

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• To accelerate this growth, reinvest the dividends
  instead of taking payments.

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• Heres the benefit youll pick up along the way.
  Dividend income growth tends to be smoother than
  the growth of overall stock market returns.
  Youll run into fewer bumps, fewer wild swings,
  and over time, your total return is stronger.

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• This is how you keep giving yourself one raise
  after another. To help make sure it happens,
  keep an eye on the essential ingredients of
  dividend income growth.

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• How The Dividend Investor Who Wants More Can Get
  More  

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• To grow dividend income one of three things needs
  to happen.
• 1. The stocks you hold continue to increase their
  dividend payments.
• 2. You invest in stocks that pay a high yield. 
• 3. You look for stocks that give you a bonus
  along with your regular dividend.

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• Lets look at each of these strategies.

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Uncover The Stocks That Keep Growing Dividends
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• Does history really matter?
•  One of the best ways to determine if a company
  will be able to grow its dividend payment quarter
  after quarter and year after year is to look
  back. Look at the actual performance and the
  pattern of dividend growth.
• Lets take a few examples.

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IBM Corp. (IBM)

• IBM has been growing its dividend since 2000.
  It delivers a yield of 2.24.
•  Dividends are nothing new for IBM. Theyve been
  paying them since 1925, when the yield was a
  highly generous 20. (Within a year, the IBM
  stock split 3 for 1. But thats what life was
  like back in the roaring twenties.)

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IBM Corp. (IBM)
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Visa (V)

• Visa has been growing its dividend since 2009.
  
• When you look at Visa, youre struck by the low
  yield, less than 1. But the payout ratio of
  17.9 is also relatively low, which suggests
  there could be room for significant dividend
  growth ahead.

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Visa (V)
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Coca-Cola Co. (KO)

• Coca-Cola Co. has paid a quarterly dividend since
  1920. And theyve been paying growing dividends
  for 51 years. The stock delivers a yield of
  2.99.
• When a company like Coca-Cola has been growing
  its dividend payments and making them like
  clockwork for more than a half a century,
•  

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Coca-Cola Co. (KO)

• Youve got a pretty good indication that the
  wheels arent about to come off.
• But naturally, history isnt a foolproof roadmap
  for the future. You dont want to confuse a
  track record with a performance guarantee.

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Coca-Cola Co. (KO)
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• And to grow your dividend income, you dont want
  to run off into the world of high yield stocks
  without an assurance that these high yields can
  actually be paid for years to come.
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• Heres why.

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The High Wire Act High Yield Dividend Stocks
Perform
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• For every Visa where the yield is below 1, there
  are stocks paying a high yield. But appearances
  can be deceiving, and when you peel back the
  numbers behind the high yield, youll usually
  make some interesting discoveries.

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• There is usually a good reason why a stocks
  yield is high, and sometimes this reason is not
  comforting. Management may simply be trying to
  attract investors, or to bring in capital.
  Because the fundamentals of the business arent
  in good shape, a higher yield is used as window
  dressing.

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• Whatevers happening, youve always got to keep
  an eye on the classic risk and reward factor.
  Ask yourself how long a company will be able to
  pay a high dividend, and what will happen to the
  underlying value of the stock if the dividend is
  cut.

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• To grow dividend income by investing in higher
  yielding stocks, investors often look at an
  Exchange Traded Fund. Investing in an ETF
  provides the diversification that can protect
  investors from the ups and downs of an individual
  stock.

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• Its often easier to find a high yield when you
  look at global markets. Because emerging markets
  offer the potential for stronger growth rates,
  growing dividends can be available.

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• An example of an ETF for investors interested in
  high yields on global markets is Wisdom Tree
  Emerging Markets Equity Income Fund (DEM).
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• The strategy of growing your income, the way to
  make sure your stocks keep giving you a raise
  with higher dividends, is not always based on
  capturing a higher yield.
•  

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• Higher yields can complement lower yielding
  stocks when it comes to growth, but keep in mind
  that the higher the yield, the harder it will be
  for the company to keep paying.
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• And heres something else to keep in mind.
  Theres another way to collect higher paychecks
  without the risks of investing in a high yield
  stock.

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How Dividend Stock Investors Pick Up Bonus
Payments
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• Regular quarterly dividends are the bedrock of
  investing for income. And when dividends grow,
  so does income.
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• But how can you collect more?
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•  

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• Investors can pick up extra payments. Special
  one-time dividends. These one-time distributions
  can happen at any time for any reason.
•  

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• We saw a flurry of them a few years ago when
  concerns about new taxes on dividends prodded
  companies to beat the clock and pay special
  dividends ahead of schedule to keep shareholders
  happy.

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• Costco (COST) did this a few years ago, and
  actually borrowed money by issuing bonds to pay
  its shareholders 3 billion in a special
  dividend.
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• Can you target the companies that are likely to
  pay this kind of special dividend?
•  

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• The best way is to look at the balance sheet.
  Look for companies sitting on lots of cash. When
  you find a company where there is four or five
  times as much net cash as total debt, a special
  dividend payment could be brewing.
•  

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• This might also be a sign that the company is
  prepare to reward investors over the long haul
  with consistent dividend growth. The financial
  war chest to pay these dividends is already well
  stocked.

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Ready To Give Yourself A Raise?
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• Now you know what to look for. Stocks that
  deliver a history of growing dividends, and that
  are positioned to sustain this growth. Stocks
  where you believe the advantages of a high yield
  can stick around, and wont disappear.
•  

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• This is how dividend investors minimize the risk
  of capturing growing income.

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