I love dividends! And I love dividend growth investing!
I want to retire early and live by my dividend income. So when I see companies in which I own shares who are increasing their quarterly dividend years after years at a rate a lot above inflation, it makes me dream about my future retirement!
Dividend growth investing is the technique I should have known about ten years ago! I would be rich by now… But at least, it’s not too late! I’m only 32…
Today, I have received two great news.
First, Exxon (XOM) has increased by 9,5% its quarterly dividend. I bought shares of Exxon very recently after a dip. Warren Buffett and Jason Fieber are also fellow shareholders so I’m very glad to be in. Exxon is a wonderful cash-cow. They have increased the dividend for 31 consecutive years at an average rate of 6,1%!!!
Second, Jean-Coutu (PJC-a.to) has increased its quarterly dividend by 17,6%!!! Part of the Canadian Aristocrat’s list, Jean-Coutu is a strong and well-known company here in Canada and I’m a proud shareholder of that company. They recently sold their stake in Rite-Aid which permitted me to buy shares at a discount while receiving a special dividend of 0,50$ per share!!! With an acquisition price of 18,49$ per share, it has been a nice welcome gift. With the rest of the money, they have bought back 23 000 000 shares, almost the quarter of the shares that were out! This resulted in a nice capital gain with the stock now trading at over 22$ per share. That’s almost a 20% increase!
When companies increase dividends, it typically means that the managers are confident about the cashflow and that the operations are going well enough to give a raise to shareholders! It’s a sign of good financial health!
What about you? Did you get any dividend raise? How do you feel about these raises?
[author] [author_image timthumb=’on’]http://quityourdayjob101.com/wp-content/uploads/2014/03/ID-10050051.jpg[/author_image] [author_info]Hi, my name is Allan. I’m the masked blogger. Like you I’m a modern slave, prisoner of a 9@5 job in Corporate America. They told us when we were young that we would live in a society of leisure and that technology would allow us to work only a couple of hours per day. But we live in a society of stress and uncertainty. My situation could be a lot worse and I know it. So many humans are suffering on this planet. But a golden cage remains a cage anyway. At least, I have an escape plan. I will retire before 45 years old over my passive income. This is a dream that is so powerful that I will make sure it happens. To build my wealth, I mainly invest in undervalued dividend growth stocks. [/author_info] [/author]
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