The market consistently rewards faster earnings growth in stocks, even with more income-oriented names. Higher profits can lead to higher future dividends, which in turn helps investors build wealth, even as inflation is rising.
I’ve found two companies with hefty dividends that more than doubled earnings per share in the latest quarter. However, chasing the highest growth from one quarter to the next doesn’t always pay, if those profits aren’t passed down to investors as dividends on a consistent basis.
Earnings Growth Could Stem Tide of Dividend Cuts
Ellington Financial LLC (EFC) is a specialty finance company with over $7 billion in assets that invests in everything from mortgage backed securities, to collateralized loan obligations and distressed corporate debt.… Read more