Let us find out why companies that give ever-increasing cash dividend income are a good choice for investment:
Your Share Holding Goes Up And So does Your Dividend Income.Your income begins to escalate with your owning more shares every year and the dividend income rising correspondingly.
Your Dividend Income Increases Even If Stock Prices don’t.You are no more at the mercy of the market. Irrespective of what your shares are worth, you keep earning additional cash dividends. In fact, even if the market price dips, you are still at an advantage, as that allows you to reinvest to purchase more shares.
You are not hit by Inflation.With the dividend income rising every year, you offset the effects of a rising inflation. This particularly provides relief to people who have retired and depend on a regular cash inflow to help them meet their expenses.
At this stage one need not rollback the investment into further shares, instead, the cash dividend can be used as a kind of regular pension money.