Not all dividends are paid out equally; some companies try to create a “trap” by overpaying on a quarter’s dividend, attracting buyers through a short-term high dividend yield that seems too good to pass up. The realization comes much later, though, that these companies can’t afford these payouts, straining the financial profile altogether and having to decrease or cancel these dividends later.
Today’s list of dividend increases focuses on the exact opposite of this situation. These companies and their solid fundamentals demonstrate that they can not only afford today’s increases but also continue to reward shareholders with rising income potential in the coming quarters and years.
