A company’s dividend growth rate can be an excellent sign of financial health and stability because any company that consistently increases its dividend payouts over long periods proves it can make money regardless of economic conditions (and we all know just how susceptible stocks are to massive economic changes). Dividend growth rates (along with dividend rates and yields) can be deciding factors for income investors looking for their next purchase.
However, statistics, percentages, and any type of number don’t exist in a vacuum; they need context. When considering statistics, one must consider correlation vs causation. Indeed, Mark Twain once said, “There are lies, damned lies, and statistics.”
