Saturday, March 25, 2017

GROWING DIVIDEND PAYERS BETTER DURING RISING INTEREST RATES

It seems like we are in for a period of rising interest rates.  In this case, you might be interested in stocks that perform well during rising interest rates, e.g. stock with rising dividends (see figure).*  Perhaps it stands to reason because the rising dividends help counteract the rising interest rates.  Thus as interest rates rise, you get more money.

(click on figure to enlarge)

If you wish information on dividend growers and those you can DRIP you can see http://www.dripinvesting.org/tools/tools.asp. The table is updated monthly by dFish (Pen name).

You will find that a few companies have increased their dividend more than 60 yrs now (AWR-American States Water 62 yrs, DOV-Dover Corp. 61 yrs, GPC-Genuine Part 61 yrs, PH-Parker Hannifin 61 yrs, NWN-Northwest Natural Gas 60 yrs, EMR-Emerson 60 yrs, PG-Proctor & Gambel 60 yrs.  MMM-3M 59 yrs is knocking at the Sexy 60s door next year. There are quite a few stocks that have raised their dividend for more than 50 yrs.

You should not buy these stock blindly because there are those who have dropped from the list.  The first stock to hit the 60s number (DBD-Diebold-Nixdorf) promptly cut their dividend after 60 yrs.  As they say, do your own due diligence.

* https://www.clearbridge.com/perspectives/institutional/2016/dividend-strategy-rates.html

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