At Reaves, we believe one signal of a company’s strength and the durability of 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 the portfolios managed with our Long Term Value Strategy1.
Despite a backdrop of rising inflation and a slowing U.S. economy, we were pleased to see that the majority of companies owned as of 6/30/22 increased their dividends over the past 12 months. The weighted average dividend increase was 9.9%.
Our view is that the recent dividend growth exhibited by these companies is an indicator of their potential to compound earnings and dividends in the future and aligns with the long-term objectives of this investment strategy — to generate both income growth and capital appreciation. Please don’t hesitate to contact us with any questions about this data or our Long Term Value investment strategy.