dividend growth

Dividend growth refers to the increasing payments a company makes to its shareholders over time. When a company performs well and expects sustained profits, it might raise its dividends to show confidence and share its success. This process signals stability and growth potential, making the stock more attractive to investors. For example, if a company pays $1 per share in dividends this year and raises it to $1.10 next year, it is experiencing dividend growth. Consistent dividend growth can indicate a healthy, growing business and provide investors with increasing income over time.