I wanted to provide a list of factors to consider when searching for the best companies that grow their dividends over the long haul. I recommend placing a primary emphasis on per share earnings growth and sales growth, and also examining debt, share count dilution, and payout ratios as part of your analysi
It is not a requirement, but companies that grow their dividends over long periods of time tend to belong to non-cyclical industries that don’t experience many dips in profit.
The pharmaceutical giant Johnson & Johnson has grown its dividend annually since 1963, and has never quit its payout to shareholders at any point in its publicly traded history. What makes this possible? Earnings never collapse to force a dividend cut.