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 the portfolios managed with our Long Term Value Strategy1.
Despite a challenging macroeconomic backdrop, we were pleased to see that the majority of companies owned as of 12/31/22 increased their dividends from the year ago levels. The weighted average dividend increase was 6.8%.
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.