2 Dividend Kings That Have Hiked Their Payouts by More Than 50% in 5 Years
Dividend Kings aren't normally the most generous when it comes to dividend growth. After all, to keep a dividend streak going, a company can just raise its dividend by a penny each year. Although these can be reliable dividend stocks to own for the long term, they aren't usually good dividend growth stocks to own.
However, both Abbott Laboratories (NYSE: ABT) and American States Water (NYSE: AWR) are exceptions. These businesses have done more than just the minimum to keep their streaks going. They both yield around 1.7%, which is in line with the S&P 500 average, but that is misleading as their dividend payments today are much greater than they were just five years ago.
Abbott Laboratories is a diversified healthcare company; it generates revenue through its nutrition, diagnostics, pharmaceuticals, and medical devices segments. It has made for a solid investment over the past several years. Its shares are up over 120% (not including dividends) in five years which is far better than the S&P 500, which has climbed a more modest 67% over that period. That impressive increase in value is a key reason that Abbott's dividend yield isn't as high -- the higher the share price, the lower the yield becomes since it costs more money to collect the same dividend.
Source Fool.com
