Dividend stocks are great for a number of reasons, including the income stream they provide for investors and their ability to see share price appreciation just as non-dividend-paying stocks can. But perhaps one of the most exciting benefits of owning a dividend stock is that the dividend payments themselves can grow over time. Indeed, many companies make a habit of regularly increasing their dividends every single year.
Two companies with both a consistent track record of annual dividend increases and impressive dividend growth rates in recent years are…
Last month, Texas Instruments increased its dividend for the 16th year in a row. The company boosted it by 17%, keeping up its history of strong dividend growth. This put its quarterly dividend at $0.90, or $3.60 per year, giving the stock a meaningful dividend yield of 2.8%.
“TI has a proven track record of returning cash to its shareholders,” said Texas Instruments in its press release about the increase.
The 17% dividend increase certainly isn’t out of the ordinary for the semiconductor company. On average, its dividend has been increasing by about 20% annually over the past five years.
The company can easily afford to pay these substantial dividends. On $15.2 billion in trailing-12-month sales, the company generated $6 billion of free cash flow. And of this free cash flow, the company paid out just $2.8 billion in dividends.
In March, Vail announced a 20% increase to its dividend. With shares trading at about…
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