This Stock Is Giving Its Shareholders A Monstrous 38% Pay Raise

Passive income is awesome. But not all passive income is created equal. Some forms of passive income are definitely better than other forms.

And I’d argue that dividend growth stocks provide the best form of passive income – growing dividend income.

First of all, there’s nothing out there that has the passivity of dividends. Wake up. Get paid. It really is that easy.

Second, passive income isn’t all that great if it isn’t growing and keeping up with inflation.

Dividend growth stocks have built-in inflation protection through dividend increases. Great businesses are producing reliable, rising profits.

And the best of the best return some of those reliable, rising profits back to their shareholders in the form of reliable, rising dividends.

If your passive dividend income is increasing even faster than inflation, your purchasing power is rising over time. That creates a growing gap between your passive income and expenses.

Today, I want to tell you about three different dividend growth stocks that just announced dividend increases.

Leggett & Platt  (LEG) just increased their dividend by 5%.

This manufacturing company has been one of the most consistent dividend payers and raisers out there. The dividend reliably rises like clockwork from this Dividend Aristocrat.

Leggett & Platt has increased their dividend for 50 consecutive years.

That puts them in vaunted Dividend King territory, which includes only stocks with 50 or more consecutive years of dividend increases. This 5% dividend increase is actually higher than their 10-year dividend growth rate of 4.3%. Love when that happens. And with the stock’s current yield of 2.9%, it’s not a bad current income play either.

This stock has been a monster, up almost 100% over the last year.

Dividend Aristocrats like this one are awesome. You get those capital gains to sleep on while you get the growing cash flow to go out and spend. It’s getting your cake and eating it, too. It’s not cheap after a ferocious run, now sporting a P/E ratio over 27, but this is the kind of stock you hold on to once you snag it on a dip.

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Disclaimer: Please consult with a licensed investment professional before investing any of your money. Never invest in a security or idea featured on this channel unless you can afford to lose ...

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