In dividend investing, consistency is everything. While a company's past behavior is no guarantee of the future, if a stock has consistently raised its dividend for many years, the odds that this pattern will continue are high.
Why is it so important?
When a company consistently raises its dividend, it allows your stream of income to grow over time. For example, if a stock pays just a 3% dividend yield but raises it by 10% every year like clockwork, in 30 years your annual dividend income will be more than half of your initial investment. This effect becomes more amplified the longer you hold the shares, as well. My grandmother owns several stocks whose dividend payments are higher than the amount she paid for the shares themselves back in the 1950s.
Companies with growing dividends should be a cornerstone of any long-term investment strategy, as these types of com. It is this type of consistent growth that allowed companies like 3M (NYSE:MMM) and Procter and Gamble (NYSE:PG) to grow into the powerhouses they are today, and it has allowed Diebold (NYSE:DBD) to still be a leader in its industry after more than 150 years. With that in mind, here are 10 stocks with fantastic track records of raising their dividends.
Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.
Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends 3M, Emerson Electric, and Procter & Gamble. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.