Dividend Growth

Come up off your color charts
I know where you're coming from
--Blondie

Unlike bond coupons, stock dividends tend to increase over time. In my view, this makes dividend-paying stocks superior income-producing instruments.

S&P 500 annualized dividend growth rate...
1990-1999: +3.5%
2000-2009: +3.4%
2010-2019: +10.4% pic.twitter.com/bwFMwT1rrf

— Charlie Bilello (@charliebilello) January 3, 2020

However, annual dividend increases over the past decade were about triple those of the previous two.

It should not be surprising, therefore, if we should happen to experience some 'reversion to the mean' in dividend growth over the next few years.