Planning your retirement is one of the most challenging exercises in the world. There are plenty of ways, methods and advisors, who try to influence your choice with formulas and narratives. Some of these methods may work, while others will fail most of the time. Everyone’s situation is different of course, which further complicates things. The investment path and environment will vary from individual to individual as well. For example, your experiences will be different if you started retirement in 2012, versus starting retirement in 2007 or 1929.
Some lucky investors have the benefit of pensions in addition to social security. This alone can be enough to quit your job, albeit in your late 50s or early 60s.
Others plan to rely on a combination of investments, and withdraw a portion for so many years. There are hundreds of articles, papers and opinions on the best way to live off investments. I have read a portion of them, but have decided to largely focus elsewhere.
For my retirement, I plan to live off the dividends generated from my equity portfolio.
Dividend payments are more stable than share prices and the potential for capital gains, which makes them an ideal source of income for retirement. Historically, US dividend growth has exceeded the rate of inflation. This means that dividend income not only maintains purchasing power, but increases it over time.
I go a step further by focusing on companies that can grow those dividends, have adequate dividend payout ratios and are available at attractive valuations. By assembling a portfolio of carefully selected dividend growth stocks, I can easily see how much income my retirement portfolio generates right from day one. When I compare my dividend income to my expenses, I know exactly where I am on my journey towards financial independence or retirement. This is the so called the divided crossover point.
Dividends also take into consideration current valuation available to investors today. A lot of retirees rely on historically backtested studies that show how they will not outlive their money by withdrawing 4% of their portfolios annually. Unfortunately, some of these studies are using data from historical periods that may not be directly comparable with todays situation. If the data was for periods where bond yields were above 4% and dividend yields were above 4%, it may make sense that withdrawing 4% from a portfolio was sustainable ( even when prices largely went nowhere, such as the period between 1965 and 1982). The question is whether it makes sense to withdraw 4% from a portfolio today, during a time when bond yields are closer to 2% and equity dividend yields are closer to 2% as well.
These studies attempt to make up the difference by hoping for quick annual gains in principle. Unfortunately, it is difficult to predict what share or bond prices will do in the short run when you need to sell. While the yields themselves will vary, the dividend payments will not. Relative to share prices, dividend payments look like an ocean of stability. They make retirement planning to be a breeze.
I have decided to focus on dividend income, since it is easier to predict. For example, I am reasonably certain that Johnson & Johnson will pay at least $3.60/share in annual dividend income over the next 12 months. Chances are high that this dividend king will continue growing the dividend at least once during the same time as well. However, I have no idea whether the stock price will go above $150/share or below $100/share. If you plan to sell shares to pay for retirement expenses, it makes a difference whether you sell at a high price or at a low price. Unfortunately, no one can predict share prices. On the other hand, predicting dividend incomes is much easier. This is why I focus on dividend income for my retirement planning, and ignore share price fluctuations. I think like a business owner.
Again, I focus on analyzing each individual business, in order to determine if it can safely pay and grow dividends per share over time. I also focus on underlying valuations, in order to lock in a set rate of dividend yield today. I also go a step further, by trying to build out a diversified portfolio consisting of as many companies as possible that meet my basic criteria. Besides diversification by sector, I also try to diversity over time, in order to build my positions in these companies more gradually.
The focus on dividend income makes the transition from earning a paycheck to retirement much easier. When you work, you receive a paycheck once or twice per month. When you create a dividend portfolio, you generate dividend income that replaces those paychecks. In effect, with dividemd investing you are creating your own paycheck to live off in retirement.
Compared to my paycheck however, dividend income is more reliable because it is generated from at least 30 – 60 global businesses, and not a single client ( employer). My job is to diversify, build over time, buy at the right valuation and ensure that the underlying profit machine is humming along nicely. When you start with the end in mind, and you keep at it, you can track your progress until you reach your own dividend crossover point.
To put things in perspective, I believe that it is relatively easy to create a diversified portfolio today with a starting yield of roughly 3%. This portfolio will have adequate sector allocations, and could be built out over a period of several months to an year, in order to take advantage of dollar cost averaging and the variety of different opportunities available at different periods. If you place $1,000 in such a portfolio, it can easily generate $30 in annual dividend income today. If history is any guide, this dividend income will increase over time at or above the rate of inflation.
An investor who needs $30,000 in retirement income can get there by potentially investing $1,000,000. Few investors have this type of cash ready to be deployed however. The mindset of viewing income and expenses through the lens of dividend income investing however, can change you. The investor can see that if they only require $24,000 in annual retirement income, they need a nest egg with $800,000 today. However, if they need $36,000 to live off in retirement, they will need a nest egg worth $1,200,000.
For each extra dollar of extra expenses in retirement, our investor will have to save $33 extra dollars. These 33 extra dollars, invested at a 3% starting yield will generate one dollar in dividend income for ever. If you increase expenses by $10,000/year, prepare to come up with an extra $333,000. This can take quite a few years of hard work to accumulate.
Alternatively, if our investor manages to cut expenses, they can rest assured that for reducing each dollar in annual expenses, they need to save and invest $33 less. If you decrease expenses by $10,000/year, you can retire with a nest egg that is $333,000 less than originally expected. If you are the average person, the fact that you need to save a lower amount for retirement means that you can also retire earlier.
As I mentioned above, few investors have $1,000,000 to invest right from the start. However, if you choose to invest regularly over a set period of time, you can get there within a reasonable period of time. The inputs will vary from individual to individual of course, because different investors can invest different amounts every month. The conditions will vary as well. For example, when I invested in 2008 - 2010, it was much easier to find quality companies yielding 4% than it is today. However, if you keep investing regularly, keep reinvesting dividends, and manage to put money to work in a diversified portfolio of quality blue chip dividend payers, you may reach that goal in a reasonable amount of time.
For example, lets look at how long it would take you to reach $30,000 in annual dividend income if you invest $3,000 per month in dividend growth stocks. Let's assume an average yield of 3% and an average dividend growth of 6%/year. We will assume automatic reinvesting of dividends.
At this rate, it would take the investor roughly 14 years to reach their goals. This is not bad.
If money is tight, and our investor can only afford to put $2,000 to work each month, they can reach their goal within roughly 17.50 years. If the investor can put only $1,000 to work every month, they will be able to generate $30,000 in annual dividend income after 24 years. I used the spreadsheet in this article to calculate the different scenarios.
In this article, I showed that it pays to focus on the end goal in mind when investing for retirement. The first step involves coming up with a target monthly dividend income to pay for retirement expenses. The next step involves creating a dividend strategy that allows the investor to build a dividend portfolio that showers them with a growing stream of dividend income. Depending on current condition, investors can see how each dollar they invest generates a certain amount of dividend income. As a result, investors can see their progress towards the coveted dividend crossover point after every new investment they make, after every dividend increase and after every single action to reinvest dividends. By investing regularly, keeping investment costs low, and sticking to their strategy through thick or thin, our investors have a very high chance of hitting their retirement objectives.
Thank you for reading!
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Thursday, August 28, 2025
Monday, August 25, 2025
Eleven Dividend Growth Stocks Raising Dividends Last Week
I review the list of dividend increases every week, as part of my monitoring process.This exercise helps me stay in touch with changes in the dividend growth investing universe. It's helpful to see how companies are performing in real time. The most recent dividend increases provide a good signaling mechanism for my monitoring process of various businesses. This is a helpful step in monitoring existing companies and potentially uncovering companies for further research.
This exercise also summarizes the key factors I look at the business level, before determining if I want to dive further into a company.
Over the past week, there were 17 companies that raised dividends. Eleven of these companies have managed to raise dividends for at least a decade. The companies include:
Altria Group, Inc. (MO) manufactures and sells smokeable and oral tobacco products in the United States.
The company raised its quarterly dividend by 3.92% to $1.06/share. This is the 56th consecutive annual dividend increase for this dividend king. Over the past five years, the company has managed to grow dividends at an annualized rate of 3.84%.
The company managed to grow earnings from $2.67/share in 2015 to $6.54/share in 2024. The company is expected to earn $5.44/share in 2025.
The stock trades at 12.44 times forward earnings and yields 6.27%.
American Financial Group, Inc. (AFG) is an insurance holding company, provides specialty property and casualty insurance products in the United States.
The company raised its quarterly dividend by 10% to $0.88/share. This is the 20th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 12.17%.
The company managed to grow earnings from $4.02/share in 2015 to $10.57/share in 2024. The company is expected to earn $9.44/share in 2025.
The stock trades at 14.26 times forward earnings and yields 2.61%.
Avnet, Inc. (AVT) distributes electronic component technology in the Americas, Europe, the Middle East, Africa, and Asia/Pacific. It operates through two segments, Electronic Components and Farnell.
The company raised its quarterly dividend by 6.06% to $0.35/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 9.31%.
The company's earnings went from $3.87/share in 2015 to $2.78/share in 2024. The company is expected to earn $4.57/share in 2025.
The stock trades at 12.17 times forward earnings and yields 2.52%.
Dillard's, Inc. (DDS) operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States.
The company raised its quarterly dividend by 20% to $0.30/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 17.32%.
The company managed to grow earnings from $6.91/share in 2015 to $36.82/share in 2024. The company is expected to earn $30.07/share in 2025.
The stock trades at 17.75 times forward earnings and yields 0.22%.
Popular, Inc. (BPOP) provides various retail, mortgage, and commercial banking products and services in Puerto Rico, the United States, and the British Virgin Islands.
The company raised its quarterly dividend by 7.14% to $0.75/share. This is the 11th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 15.63%.
The company's earnings went from $8.66/share in 2015 to $8.56/share in 2024. The company is expected to earn $11.35/share in 2025.
The stock trades at 10.75 times forward earnings and yields 2.46%.
EastGroup Properties, Inc. (EGP) is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina.
The company raised its quarterly dividend by 10.71% to $1.55/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 12.35%.
The company managed to grow FFO from $3.67/share in 2015 to $8.35/share in 2024. The company is expected to earn $8.96/share in 2025.
The stock trades at 18.90 times forward FFO and yields 3.66%.
Intuit Inc. (INTU) provides financial management, compliance, and marketing products and services in the United States. The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax.
The company raised its quarterly dividend by 15.40% to $1.20/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 14.03%.
The company managed to grow earnings from $3.74/share in 2015 to $13.82/share in 2024. The company is expected to earn $23.02/share in 2025.
The stock trades at 28.78 times forward earnings and yields 0.72%.
MGE Energy, Inc. (MGEE) operates as a public utility holding company in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments.
The company raised its quarterly dividend by 5.56% to $0.475/share. This is the 50th consecutive annual dividend increase for this newly minted dividend king. Over the past five years, the company has managed to grow dividends at an annualized rate of 4.93%.
The company managed to grow earnings from $2.06/share in 2015 to $3.33/share in 2024. The company is expected to earn $3.65/share in 2025.
The stock trades at 24.06 times forward earnings and yields 2.17%.
Stock Yards Bancorp, Inc. (SYBT) operates as a holding company for Stock Yards Bank & Trust Company that provides various financial services for individuals, corporations, and others in the United States. It operates in two segments, Commercial Banking, and WM&T.
The company raised its quarterly dividend by 3.23% to $1.20/share. This is the 16th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 3.24%.
The company managed to grow earnings from $1.68/share in 2015 to $3.91/share in 2024. The company is expected to earn $4.61/share in 2025.
The stock trades at 17.71 times forward earnings and yields 1.57%.
United Bancorp, Inc. (UBCP) operates as the bank holding company for Unified Bank that provides commercial and retail banking services in Ohio.
The company raised its quarterly dividend by 1.35% to $0.1875/share. This is the 13th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 5.28%.
The company managed to grow earnings from $0.65/share in 2015 to $1.27/share in 2024. The company is expected to earn $1.32/share in 2025.
The stock trades at 10.87 times forward earnings and yields 5.23%.
Unity Bancorp, Inc. (UNTY) operates as the bank holding company for Unity Bank that provides commercial and retail banking services.
The company raised its quarterly dividend by 7.14% to $0.15/share. This is the 14th consecutive annual dividend increase for this dividend achiever. Over the past five years, the company has managed to grow dividends at an annualized rate of 10.90%.
The company managed to grow earnings from $1.03/share in 2015 to $4.13/share in 2024. The company is expected to earn $5.32/share in 2025.
The stock trades at 9.81 times forward earnings and yields 1.15%.
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Monday, August 18, 2025
Seven Dividend Growth Companies Raising Dividends Last Week
I review the list of dividend increases every week as part of my monitoring process. This exercise helps me review existing holdings quickly and potentially uncover hidden gems for further research.
It's a prime example of the types of data I use to quickly determine if a company should be placed on my list for further research or not. That's because it shows you all the important drivers behind stock market wealth creation.
Namely, dividends, growth in earnings per share and valuation. The interplay between these three items determine if you are going to make money or not. Your future returns are dependent on finding a good quality company at a good entry valuation, which keeps delivering on its growth, while patiently reinvesting those growing distributions.
Anywho, there were a little over 20 companies raising dividends last week. Seven of these companies managed to increase dividends last week AND also have a ten year track record of annual dividend increases under their belt. The companies include:
Cboe Global Markets, Inc. (CBOE) operates as an options exchange in the United States and internationally. It operates through six segments: Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital.
The company raised quarterly dividends by 14.30% to $0.72/share. This is the 15th consecutive annual dividend increase for this dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 11.70%.
The company has managed to grow earnings from $2.46/share in 2015 to $7.24/share in 2024.
The company is expected to earn $9.68/share in 2025.
The stock sells for 32.30 times forward earnings and yields 0.52%.
Dover Corporation (DOV) provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide.
The company increased quarterly dividends by 1% to $0.52/share. This is the 70th consecutive year in which this dividend king has increased its annual cash dividend. Over the past decade, the company has managed to grow dividends at an annualized rate of 2.84%.
The company has managed to grow earnings from $5.52/share in 2015 to $10.16/share in 2024.
The company is expected to earn $9.48/share in 2025.
The stock sells for 18.62 times forward earnings and yields 1.18%.
J&J Snack Foods Corp. (JJSF) manufactures, markets, and distributes nutritional snack food and beverages to the food service and retail supermarket industries in the United States, Mexico, and Canada. It operates through three segments: Food Service, Retail Supermarkets, and Frozen Beverages.
The company raised quarterly dividends by 2.60% to $0.80/share. This is the 20th consecutive annual dividend increase for this dividend achiever. The company has managed to grow dividends at an annualized rate of 8.80% over the past decade.
Between 2015 and 2024, the company managed to grow earnings from $3.76/share to $4.46/share.
The company is expected to earn $4.10/share in 2025.
The stock sells for 27.17 times forward earnings and yields 2.80%.
Martin Marietta Materials, Inc. (MLM) is a natural resource-based building materials company, which supplies aggregates and heavy-side building materials to the construction industry in the United States and internationally.
The company raised quarterly dividends by 5.10% to $0.83/share. This is the 10th consecutive annual dividend increase for this newly minted dividend achiever. Over the past decade, the company has managed to grow dividends at an annualized rate of 6.70%.
The company has managed to grow earnings from $4.31/share in 2015 to $32.49/share in 2024.
The company is expected to earn $18.87/share in 2025.
The stock sells for 32.30 times forward earnings and yields 0.52%.
MGE Energy, Inc. (MGEE) operates as a public utility holding company in the United States. It operates through Regulated Electric Utility Operations; Regulated Gas Utility Operations; Nonregulated Energy Operations; Transmission Investments; and All Other segments.
The company hiked quarterly dividends by 5.60% to $1.90/share. This marked the 50th consecutive year of annual dividend increases for this newly minted dividend king. Over the past decade, the company has managed to grow dividends at an annualized rate of 4.70%.
The company managed to grow earnings from $2.06/share in 2015 to $3.33/share in 2024. It's on track to earn $3.58/share in 2025.
The stock sells for 23.50 times forward earnings and yields 2.15%.
RB Global, Inc. (RBA) operates a marketplace that provides insights, services, and transaction solutions for buyers and sellers of commercial assets and vehicles worldwide.
The company raised quarterly dividends by 6.90% to $0.31/share. This is the 23rd consecutive annual dividend increase for this dividend achiever. Over the past decade the company has managed to grow dividends at an annualized rate of 9.25%.
The company managed to grow earnings from $1.7/share in 2015 to $2.91/share in 2024.
The company is expected to earn $5.03/share in 2025.
The stock sells for 31.55 times forward earnings and yields 1.07%.
United Community Banks, Inc. (UCB) operates as the bank holding company for United Community Bank that provides financial products and services to commercial, retail, government, education, energy, health care, and real estate sectors in the United States.
The company raised quarterly dividend by 4.20% to $0.25/share. This is the 11th consecutive annual dividend increase for this dividend achiever. Over the past 5 years, the company has managed to grow dividends at an annualized rate of 7.10%.
The company has managed to grow earnings from $1.09/share in 2015 to $2.04/share in 2024.
The company is expected to earn $2.65/share in 2025.
The stock sells for 11.77 times forward earnings and yields 3.08%.
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Monday, August 11, 2025
Six Dividend Growth Stocks Raising Dividends Last Week
I review the list of dividend increases every week as part of my review process.
There were 35 dividend increases over the past week. Six of these companies have managed to raise dividends for at least ten consecutive years. The companies include:
Badger Meter, Inc. (BMI) manufactures and markets flow measurement, quality, control, and communication solutions worldwide.
Badger Meter raised quarterly dividends by 18% to $0.40/share. This is the 33rd consecutive year of dividend increases for this dividend champion. During the past decade, the company has managed to grow dividends at an annualized rate of 13.60%.
Between 2015 and 2024, the company has managed to grow earnings from $0.90/share to $4.26/share.
The company is expected to earn $4.79/share in 2025.
The stock sells for 39.25 times forward earnings and yields 0.85%.
Broadridge Financial Solutions, Inc. (BR) provides investor communications and technology-driven solutions for the financial services industry in the United States and internationally.
Broadridge Financial raised quarterly dividends by 10.80% to $0.975/share. This is the 19th consecutive annual dividend increase for this dividend achiever. During the past decade, the company has managed to grow dividends at an annualized rate of 12.54%.
Between 2016 and 2025, the company has managed to grow earnings from $2.60/share to $7.70/share.
The company is expected to earn $9.39/share in 2025.
The stock sells for 28.41 times forward earnings and yields 1.46%.
Carlisle Companies Incorporated (CSL) operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, and internationally. It operates through two segments, Carlisle Construction Materials (CCM) and Carlisle Weatherproofing Technologies (CWT).
Carlisle Companies raised quarterly dividends by 10% to $1.10/share. This was the 49th consecutive annual dividend increase for this dividend champion. During the past decade, the company has managed to grow dividends at an annualized rate of 14.87%.
Between 2015 and 2024, the company has managed to grow earnings from $4.89/share to $28.17/share.
The company is expected to earn $20.34/share in 2025.
The stock sells for 17.44 times forward earnings and yields 1.20%.
Federal Realty (FRT) is a recognized leader in the ownership, operation and redevelopment of high-quality retail-based properties located primarily in major coastal markets from Washington, D.C. to Boston as well as Northern and Southern California.
Federal REIT raised quarterly dividend by 2.70% to $1.13/share. This is the 58th consecutive year of dividend increases for this dividend king. The company has managed to grow dividends by an annualized rate of 2.37% over the past decade.
Between 2015 and 2024, the REIT has managed to grow FFO from $5.05/share to $6.77/share
It's expected to generate $7.17/share in FFO in 2025.
The stock sells for 13 times forward FFO and yields 4.81%.
Open Text Corporation (OTEX) designs, develops, markets, and sells information management software and solutions in North, Central, and South America, Europe, the Middle East, Africa, Australia, Japan, Singapore, India, China, and internationally.
Open Text raised the quarterly dividend by 4.80% to $0.275/share. This was the 12th consecutive annual dividend increase for this dividend achiever. During the past decade, the company has managed to grow dividends at an annualized rate of 13.17%.
Between 2015 and 2024, the company has managed to grow earnings from $1.20/share to $2.34/share.
The company is expected to earn $5.53/share in 2025.
The stock sells for 7.12 times forward earnings and yields 3.55%.
Terreno Realty Corporation (TRNO) acquires, owns and operates industrial real estate in six major coastal U.S. markets: New York City/Northern New Jersey, Los Angeles, Miami, San Francisco Bay Area, Seattle, and Washington, D.C.
Terreno Realty increased quarterly dividend by 6.10% to $0.52/share. This was the 14th consecutive annual dividend increase for this dividend achiever. During the past decade, the company has managed to grow dividends at an annualized rate of 12.20%.
FFO/share increased from $0.84 in 2015 to $2.43 in 2024. The company is expected to generate $2.59/share in FFO in 2025.
The stock sells for 21.08 times forward FFO and yields 3.59%.
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Monday, August 4, 2025
Twenty Dividend Growth Companies Rewarding Owners With Raises Last Week
I review the list of dividend increases every single week, as part of my monitoring process. This process helps me check the pulse of the dividend growth investing universe.
It's helpful to monitor developing trends in newer companies, and to monitor trends in more established ones as well. The dividend increase provides strong signaling signal to me, as to the direction of the business. It's particularly helpful when compared to historical averages. For even more context, it's helpful to take it one step further and review ten year trends in financials such as earnings per share, dividends per share, dividend payout ratios etc. Last but not least, you have to look at valuation, which is more art than science.
Anyways, last week there were 41 companies in North America that raised dividends to shareholders. Twenty of these companies have a minimum ten year streak under their belts. The companies include:
This list is not a recommendation to buy or sell stocks. It is simply a list of companies that raised dividends last week. The companies listed have managed to grow dividends for at least ten years in a row.
The next step in the process would be to review trends in earnings per share, in order to determine if the dividend growth is on strong ground. Rising earnings per share provide the fuel behind future dividend increases.
This should be followed by reviewing the trends in dividend payout ratios, in order to check the health of dividend payments. A rising payout ratio over time shows that future dividend growth may be in jeopardy. There is a natural limit to dividends increasing if earnings are stagnant or if dividends grow faster than earnings.
Obtaining an understanding behind the company’s business is helpful, in order to determine how defensible the dividend will be during the next recession. Certain companies are more immune to any downside, while others follow very closely the rise and fall in the economic cycle.
Of course, valuation is important, but it is more art than science. P/E ratios are not created equal. A stock with a P/E of 10 may turn out to be more expensive than a stock with a P/E of 30, if the latter is growing earnings and the former isn’t. Plus, the low P/E stock may be in a cyclical industry whose earnings will decline during the next recession, increasing the odds of a dividend cut. The high P/E company may be in an industry where earnings are somewhat recession resistant, which means that the likelihood of dividend cuts during the next recession is lower.
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