These 6 Dividend Growth Stocks Are Now Paying Out More Money

I love dividend growth investing. I mean, what’s not to love? While you wait for the exponential increase in your wealth to play out over time, you’re collecting safe, growing dividends. That’s right.

It’s not just the steady rise in stock prices to look forward to, which increases your wealth. It’s also those reliable, rising cash dividends you’re collecting along the way.

You’re literally getting paid to invest in companies that are out there working hard to slowly make you rich. It’s easy to be patient and stay invested for the long term when you’re collecting steadily rising cash payouts.

Things are getting more expensive. That’s the nature of inflation and the world we live in. And you want to make sure your passive income can keep up and protect your purchasing power.

High-quality dividend growth stocks have inflation protection built right in through dividend increases. Today, I want to tell you about six dividend growth stocks that just increased their dividends. Ready? Let’s dig in.

The first dividend increase you should know about came courtesy of American Electric Power Company (AEP).

American Electric Power just increased their dividend by 5.4%.

This utility company is powering up investor’s passive dividend income by increasing the amount of the dividend they pay out to their shareholders. You really have to love it. Go to bed with one passive income amount. Wake up to a newer, larger amount of passive income. All while you did absolutely nothing other than continue to hold stock. It’s that easy.

This marks the 12th consecutive year of dividend increases for the electric utility company.

The mid-single-digit dividend raise this time around is pretty much what you’d expect from the company. Their 10-year dividend growth rate is 5.2%. So we’re right there. Meantime, the stock yields 3.7%. So that’s a nice balance between current income and the growth in that income toward your future. And the dividend is covered by a payout ratio of 66.5%.

The stock is up only 4% YTD, and its recent underperformance could be an opportunity.

I see the valuation here as attractive. Not the cheapest stock in the market. But it’s a decent deal on a solid utility business. The P/E ratio is 18.1. And that’s not high in this market, even for a utility. That aforementioned 3.7% yield, by the way, doesn’t just easily beat the market; it’s also 40 basis points higher than the stock’s own five-year average yield. Take a look at this name, if you haven’t already.

These 6 Dividend Growth Stocks Are Now Paying Out More Money

by Jason Fieber, Dividends and Income • November 1, 2021

I love dividend growth investing. I mean, what’s not to love? While you wait for the exponential increase in your wealth to play out over time, you’re collecting safe, growing dividends. That’s right.

It’s not just the steady rise in stock prices to look forward to, which increases your wealth. It’s also those reliable, rising cash dividends you’re collecting along the way.

You’re literally getting paid to invest in companies that are out there working hard to slowly make you rich. It’s easy to be patient and stay invested for the long term when you’re collecting steadily rising cash payouts.

Things are getting more expensive. That’s the nature of inflation and the world we live in. And you want to make sure your passive income can keep up and protect your purchasing power.

High-quality dividend growth stocks have inflation protection built right in through dividend increases. Today, I want to tell you about six dividend growth stocks that just increased their dividends. Ready? Let’s dig in.

The first dividend increase you should know about came courtesy of American Electric Power Company (AEP).

American Electric Power just increased their dividend by 5.4%.

This utility company is powering up investor’s passive dividend income by increasing the amount of the dividend they pay out to their shareholders. You really have to love it. Go to bed with one passive income amount. Wake up to a newer, larger amount of passive income. All while you did absolutely nothing other than continue to hold stock. It’s that easy.

This marks the 12th consecutive year of dividend increases for the electric utility company.

The mid-single-digit dividend raise this time around is pretty much what you’d expect from the company. Their 10-year dividend growth rate is 5.2%. So we’re right there. Meantime, the stock yields 3.7%. So that’s a nice balance between current income and the growth in that income toward your future. And the dividend is covered by a payout ratio of 66.5%.

The stock is up only 4% YTD, and its recent underperformance could be an opportunity.

I see the valuation here as attractive. Not the cheapest stock in the market. But it’s a decent deal on a solid utility business. The P/E ratio is 18.1. And that’s not high in this market, even for a utility. That aforementioned 3.7% yield, by the way, doesn’t just easily beat the market; it’s also 40 basis points higher than the stock’s own five-year average yield. Take a look at this name, if you haven’t already.

Next up, let’s talk about the dividend increase that came in from Brown & Brown (BRO).

Brown & Brown just increased their dividend by 10.8%.

A double-digit increase in your passive dividend income for sitting on your hands and simply not selling shares. That’s the life of a dividend growth investor. And it’s fantastic.

This is the 28th consecutive year of dividend increases for the insurance company.

That dividend growth track record is as long as it possibly could be, as the company went public in 1993. So they’ve been increasing their dividend since going public. Love that. Their 10-year DGR is 8.3%, so this most recent dividend increase was actually outsized. And you want to see a pretty high rate of dividend growth here, since the stock yields only 0.6%. With a lowly payout ratio of 20.4%, you already know this dividend is headed higher for years to come.

These 6 Dividend Growth Stocks Are Now Paying Out More Money

by Jason Fieber, Dividends and Income • November 1, 2021

I love dividend growth investing. I mean, what’s not to love? While you wait for the exponential increase in your wealth to play out over time, you’re collecting safe, growing dividends. That’s right.

It’s not just the steady rise in stock prices to look forward to, which increases your wealth. It’s also those reliable, rising cash dividends you’re collecting along the way.

You’re literally getting paid to invest in companies that are out there working hard to slowly make you rich. It’s easy to be patient and stay invested for the long term when you’re collecting steadily rising cash payouts.

Things are getting more expensive. That’s the nature of inflation and the world we live in. And you want to make sure your passive income can keep up and protect your purchasing power.

High-quality dividend growth stocks have inflation protection built right in through dividend increases. Today, I want to tell you about six dividend growth stocks that just increased their dividends. Ready? Let’s dig in.

The first dividend increase you should know about came courtesy of American Electric Power Company (AEP).

American Electric Power just increased their dividend by 5.4%.

This utility company is powering up investor’s passive dividend income by increasing the amount of the dividend they pay out to their shareholders. You really have to love it. Go to bed with one passive income amount. Wake up to a newer, larger amount of passive income. All while you did absolutely nothing other than continue to hold stock. It’s that easy.

This marks the 12th consecutive year of dividend increases for the electric utility company.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-1476421457443368&output=html&h=280&adk=3208999990&adf=4264063964&pi=t.aa~a.3048083739~i.17~rp.4&w=760&fwrn=4&fwrnh=100&lmt=1635865948&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=6433606088&psa=1&ad_type=text_image&format=760×280&url=https%3A%2F%2Fdividendsandincome.com%2F2021%2F11%2F01%2Fthese-6-dividend-growth-stocks-are-now-paying-out-more-money%2F&flash=0&host=ca-host-pub-2644536267352236&fwr=0&pra=3&rh=190&rw=759&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChAI8MODjAYQmqXd4puhj7E1EkwA8U7CeijU-dyxOOKruhuq7814F55nTHGOnRda9r5ejrIzCBR-JZqOgI3kASFnSJnw7cgjssrwXydflZ5wjcxJJpfB4Ktpox2Gnn6R&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTUuMC40NjM4LjU0IixbXSxudWxsLG51bGwsIjY0Il0.&dt=1635865948764&bpp=1&bdt=2401&idt=-M&shv=r20211029&mjsv=m202110280101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D8a1223023e9ad20b-22993eaa39cc00be%3AT%3D1635865948%3ART%3D1635865948%3AS%3DALNI_MZxGvtYVNoMLTxwXsW3H3h-H0FuMA&prev_fmts=0x0%2C320x250&nras=2&correlator=3028260435971&frm=20&pv=1&ga_vid=2120148473.1635865947&ga_sid=1635865947&ga_hid=694189547&ga_fc=1&u_tz=-240&u_his=1&u_h=1080&u_w=1920&u_ah=1080&u_aw=1920&u_cd=24&adx=372&ady=986&biw=1903&bih=977&scr_x=0&scr_y=0&eid=31062423%2C31063360%2C21067496%2C31062931&oid=2&pvsid=1654345664023746&pem=893&ref=https%3A%2F%2Fdailytradealert.com%2F&eae=0&fc=1408&brdim=1920%2C0%2C1920%2C0%2C1920%2C0%2C1920%2C1080%2C1920%2C977&vis=1&rsz=%7C%7Cs%7C&abl=NS&cms=5&fu=128&bc=31&jar=2021-11-01-21&ifi=3&uci=a!3&btvi=1&fsb=1&xpc=TrmP2V12VM&p=https%3A//dividendsandincome.com&dtd=24

The mid-single-digit dividend raise this time around is pretty much what you’d expect from the company. Their 10-year dividend growth rate is 5.2%. So we’re right there. Meantime, the stock yields 3.7%. So that’s a nice balance between current income and the growth in that income toward your future. And the dividend is covered by a payout ratio of 66.5%.

The stock is up only 4% YTD, and its recent underperformance could be an opportunity.

I see the valuation here as attractive. Not the cheapest stock in the market. But it’s a decent deal on a solid utility business. The P/E ratio is 18.1. And that’s not high in this market, even for a utility. That aforementioned 3.7% yield, by the way, doesn’t just easily beat the market; it’s also 40 basis points higher than the stock’s own five-year average yield. Take a look at this name, if you haven’t already.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-1476421457443368&output=html&h=280&adk=3208999990&adf=1444390706&pi=t.aa~a.3048083739~i.23~rp.4&w=760&fwrn=4&fwrnh=100&lmt=1635865948&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=6433606088&psa=1&ad_type=text_image&format=760×280&url=https%3A%2F%2Fdividendsandincome.com%2F2021%2F11%2F01%2Fthese-6-dividend-growth-stocks-are-now-paying-out-more-money%2F&flash=0&host=ca-host-pub-2644536267352236&fwr=0&pra=3&rh=190&rw=759&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChAI8MODjAYQmqXd4puhj7E1EkwA8U7CeijU-dyxOOKruhuq7814F55nTHGOnRda9r5ejrIzCBR-JZqOgI3kASFnSJnw7cgjssrwXydflZ5wjcxJJpfB4Ktpox2Gnn6R&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTUuMC40NjM4LjU0IixbXSxudWxsLG51bGwsIjY0Il0.&dt=1635865948764&bpp=1&bdt=2401&idt=-M&shv=r20211029&mjsv=m202110280101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D8a1223023e9ad20b-22993eaa39cc00be%3AT%3D1635865948%3ART%3D1635865948%3AS%3DALNI_MZxGvtYVNoMLTxwXsW3H3h-H0FuMA&prev_fmts=0x0%2C320x250%2C760x280&nras=3&correlator=3028260435971&frm=20&pv=1&ga_vid=2120148473.1635865947&ga_sid=1635865947&ga_hid=694189547&ga_fc=1&u_tz=-240&u_his=1&u_h=1080&u_w=1920&u_ah=1080&u_aw=1920&u_cd=24&adx=372&ady=2108&biw=1903&bih=977&scr_x=0&scr_y=0&eid=31062423%2C31063360%2C21067496%2C31062931&oid=2&pvsid=1654345664023746&pem=893&ref=https%3A%2F%2Fdailytradealert.com%2F&eae=0&fc=1408&brdim=1920%2C0%2C1920%2C0%2C1920%2C0%2C1920%2C1080%2C1920%2C977&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&jar=2021-11-01-21&ifi=4&uci=a!4&btvi=2&fsb=1&xpc=htD4rx0ztU&p=https%3A//dividendsandincome.com&dtd=36

Next up, let’s talk about the dividend increase that came in from Brown & Brown (BRO).

Brown & Brown just increased their dividend by 10.8%.

A double-digit increase in your passive dividend income for sitting on your hands and simply not selling shares. That’s the life of a dividend growth investor. And it’s fantastic.

This is the 28th consecutive year of dividend increases for the insurance company.

That dividend growth track record is as long as it possibly could be, as the company went public in 1993. So they’ve been increasing their dividend since going public. Love that. Their 10-year DGR is 8.3%, so this most recent dividend increase was actually outsized. And you want to see a pretty high rate of dividend growth here, since the stock yields only 0.6%. With a lowly payout ratio of 20.4%, you already know this dividend is headed higher for years to come.https://googleads.g.doubleclick.net/pagead/ads?client=ca-pub-1476421457443368&output=html&h=280&adk=3208999990&adf=3179604354&pi=t.aa~a.3048083739~i.33~rp.4&w=760&fwrn=4&fwrnh=100&lmt=1635865948&num_ads=1&rafmt=1&armr=3&sem=mc&pwprc=6433606088&psa=1&ad_type=text_image&format=760×280&url=https%3A%2F%2Fdividendsandincome.com%2F2021%2F11%2F01%2Fthese-6-dividend-growth-stocks-are-now-paying-out-more-money%2F&flash=0&host=ca-host-pub-2644536267352236&fwr=0&pra=3&rh=190&rw=759&rpe=1&resp_fmts=3&wgl=1&fa=27&adsid=ChAI8MODjAYQmqXd4puhj7E1EkwA8U7CeijU-dyxOOKruhuq7814F55nTHGOnRda9r5ejrIzCBR-JZqOgI3kASFnSJnw7cgjssrwXydflZ5wjcxJJpfB4Ktpox2Gnn6R&uach=WyJXaW5kb3dzIiwiMTAuMC4wIiwieDg2IiwiIiwiOTUuMC40NjM4LjU0IixbXSxudWxsLG51bGwsIjY0Il0.&dt=1635865948764&bpp=1&bdt=2401&idt=-M&shv=r20211029&mjsv=m202110280101&ptt=9&saldr=aa&abxe=1&cookie=ID%3D8a1223023e9ad20b-22993eaa39cc00be%3AT%3D1635865948%3ART%3D1635865948%3AS%3DALNI_MZxGvtYVNoMLTxwXsW3H3h-H0FuMA&prev_fmts=0x0%2C320x250%2C760x280%2C760x280&nras=4&correlator=3028260435971&frm=20&pv=1&ga_vid=2120148473.1635865947&ga_sid=1635865947&ga_hid=694189547&ga_fc=1&u_tz=-240&u_his=1&u_h=1080&u_w=1920&u_ah=1080&u_aw=1920&u_cd=24&adx=372&ady=2798&biw=1903&bih=977&scr_x=0&scr_y=0&eid=31062423%2C31063360%2C21067496%2C31062931&oid=2&pvsid=1654345664023746&pem=893&ref=https%3A%2F%2Fdailytradealert.com%2F&eae=0&fc=1408&brdim=1920%2C0%2C1920%2C0%2C1920%2C0%2C1920%2C1080%2C1920%2C977&vis=1&rsz=%7C%7Cs%7C&abl=NS&fu=128&bc=31&jar=2021-11-01-21&ifi=5&uci=a!5&btvi=3&fsb=1&xpc=iyH3p3jmiX&p=https%3A//dividendsandincome.com&dtd=40

This stock is up 43% this year, and the valuation looks stretched.

Every basic valuation metric is running well ahead of its respective recent historical average. For example, the P/E ratio of 33.1 is significantly higher than its own five-year average of 23.6. As you know from the videos I’ve produced, I’m a huge fan of the insurance space. And this is certainly a name to put on the radar. But I’d like to see a serious pullback here.

We now have to have a discussion about the dividend increase that was announced by HP Inc.(HPQ).

HP just increased their dividend by a whopping 29%.

When’s the last time you got a 29% pay raise from your day job? Never, right? I don’t think I ever got a pay raise like that, back when I still had a day job. Well, HP shareholders got a 29% pay raise for simply holding HP stock. It’s beautiful.

The information technology company has now increased their dividend for 12 consecutive years.

This dividend increase was a nice surprise for shareholders, as the 10-year DGR is 16.7%. Double-digit dividend raises are par for the course here, but 29% is definitely larger than expected. Plus, the stock yields 3.3%. If you can get a 3%+ yield and double-digit dividend growth, that’s money. Even after this huge dividend increase, the payout ratio of 31.1% remains low.

While the stock is up 27% this year, the valuation still looks appealing.

I don’t see anything expensive about the stock. The P/E ratio of 9.5 is less than half that of the market’s earnings multiple, and it’s not far off from the stock’s own five-year average P/E ratio. The P/CF ratio of 7.2 is quite a bit lower than its own five-year average of 8.0. I think this is a business worth taking a good look at right now.

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