At Reaves, we believe one signal of a company’s strength and the durability of its future earnings is the pace of dividend growth. Each quarter, we post the annual rate of change in the quarterly dividend payment for each stock held in our Long Term Value Strategy1.
Of the 26 stocks owned as of 3/31/23, 23 increased their dividend from a year ago and two maintained the same payment. The weighted average dividend increase of 11.6% was skewed higher by the 100% increase in Constellation Energy’s dividend. The adjusted increase, excluding Constellation, was a very respectable 7.5%, which compared favorably to the adjusted dividend increase of 5.2% for the MSCI USA Infrastructure Index.
The dividend growth exhibited by these companies, we believe, illustrates the strategy's potential to compound earnings and dividends in the future. Please don’t hesitate to contact us with any questions about this data or our Long Term Value investment strategy.