Consecutive Years of Dividend Increases
For the best financial analysis ratios, look no further. Harvard Business School and MIT Sloan empirically demonstrate the superiority of the data that drives our models and calculations. This paper compares our financial analysis to Bloomberg and Capital IQ (see appendix for details).
The Consecutive Years of Dividend Increases equals the number of consecutive years that a company has increased its recurring dividend payment.
This metric provides a scrubbed measure of how long a company has been able to increase its dividend without any interruption in the growth trajectory. A year of no increase or dividend cuts will end the streak and restart the count at zero.
Consecutive Years of Dividend Increases is an important metric to dividend investors. A long streak of dividend increases is widely considered a good sign of a company’s sustainable competitive advantage, or “wide moat” in the words of Warren Buffett.
A company’s true dividend payment track record, or even a stock’s current dividend yield, can be skewed by a number of corporate actions such as special dividends, variable dividends, suspended dividends, or change in payment frequency. We leverage our Robo-Analyst technology to provide a cleaner, truer measure of dividends for all of our dividend metrics.
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