4 Reasons to Avoid This Unofficial Dividend King
The aim of dividend growth investing is to select companies with track records of increasing their dividends. It's also important that these companies are able to deliver dividend increases that at least keep up with rising prices of goods and services known as inflation. This allows an investor's purchasing power to remain intact or grow over time.
One company with an impressive track record of upping its dividend is the candy maker Tootsie Roll Industries (NYSE: TR). When including Tootsie Roll's 3% annual stock dividend (since an investor could theoretically sell their stock dividend and receive the cash), it has raised its overall dividends for 52 consecutive years, making it an unofficial Dividend King.
Image source: Getty Images.
Source Fool.com
