Dividend increases. Aaah. This is what Dividend Growth Investing is all about - getting shares in companies that increase their payout to you. That's the key to see your income increase with time and to keep up and beat inflation.
For the most part, I will only buy shares of a company if they raise their dividend every year. It's one of my main parameters it must pass for me to consider purchasing.
I do my best to keep up with the dividend increases for the most part. Sometimes, I miss them... In 2021, I got at least 88 dividend increases. I have a feeling it is closer to 100.
Those 88 increases resulted in a $780.33 boost to my portfolio. It ended up averaging a 7.93% increase from the earlier payout. That's a big deal. If that kind of gain happens every year, The dividend snowball just keeps getting bigger!
The big ones for 2021 were Morgan Stanley (MS) with a 100% increase, Oracle (ORCL) with a 33% hike, Armanino Foods (AMNF) with 29%, and Chimera Investment (CIM) with a nice 51.5% hike.
Here's the rundown of the gains I was able to keep up with. Like I said earlier, I am sure I missed a few.. In the chart below, you will see the "Yield on Purchase" column. That's the rate I now earn from the price I originally bought the shares for. With each annual gain, you see that it often is a much higher rate than the yield currently available. That's the secret to Dividend Growth Investing...
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