Published on 12 Feb 2024 on Benzinga via Yahoo Finance
Investors are always happy to hear that a stock in their portfolio has announced a dividend increase. For income investors, it means a monthly or quarterly raise. For investors who are more concerned with growth, such dividend hikes also portend an increase in future earnings as well.
A dividend increase usually indicates that the board of directors has faith that future earnings can cover the dividend hike comfortably. In addition, a dividend increase often makes the stock more attractive to investors. Share price appreciation often follows dividend increases.