Crisis Gives Us a Shot at 300%+ Dividend Growth. Here’s How.

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The Contrary Investing Report > NYSE:ORCL

In recent weeks, we’ve discussed proven strategies for protecting and growing our nest egg (and dividends) in this crisis. These are the times when fortunes are made and big income streams are built. However, we must be extra careful about our purchases, with plenty of “payout landmines” suddenly spread around the market.

In last Tuesday’s article, for example, we covered the most powerful indicator of dividend safety: the payout ratio, specifically dividends as a percentage of free cash flow (FCF). Unlike net income, which can be manipulated, FCF is the clearest picture of the cash a firm is generating.

That makes the FCF payout ratio the perfect one-step test to run on your holdings.… Read more

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Dividend growth is the key to retirement because it fends off the effects of inflation. Even amid low inflation of 2% to 3% a year, a stagnant dividend will actually lose 2% to 3% of purchasing power a year. The only way to actually grow your income over time, then, is to invest in companies whose management makes rising dividends a priority.

That’s one reason you should buy stocks before their dividend increases. And we’ll review nine upcoming payout raises in a moment.

But there’s a second reason that’s coming to the fore of late: interest rates.

While the Federal Reserve has tried to put the spurs to interest rates with five bumps to the Fed funds rate since December 2015, bond yields haven’t cooperated much.…
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