Thursday, March 30, 2006
Mergent's Dividend Achievers - An excellent resource for choosing your DRIPs
Every year Mergent's compiles a list of companies that have increased their dividends for five consecutive years. This would seem an easy task for most companies but there are only 35 firms on this year's list! Most of the banks are there but massive dividend payers like TransCanada Corp., BCE and TransAlta are all missing.
Some of the new companies added this year are: Atco Ltd., Canadian Western Bank, H & R REIT, Manulife Financial and Sun Life Financial.
Using this criterion for choosing companies that pay an ever increasing dividend is especially important for those investors who are looking to replace their salaries with dividend payments as they get older. A rising dividend will help these people keep pace with inflation.
However, don't disregard the importance of a growing dividend for those in their share accumulation period (like moi) as the growing dividend means it will allow me to purchase more shares on a quarterly basis through the DRIP.
So, if you are looking for an additional way of choosing a new DRIP, check out the Mergent's list here: Mergent's Dividend Achievers
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