Can the Dividend Growth Stocks Strategy Help Investors Beat the Market?
Some investment advisors swear by dividend growth as the technique for conservative investors. Lowell Miller, who heads up the money management firm of Miller/Howard Investments, is so taken with the idea that he’s written an entire book on it called The Single Best Investment: Consistently Creating Wealth with Dividend Growth. He states, “Dividend growth is real. Neither dividends nor dividend growth are some propaganda from the company, nor some hype from a brokerage firm or newsletter writer, nor some error of judgment by a finance magazine.” He calls dividend growth investing “sensible, easy, and profitable,” offering solid returns with the lowest possible risk. Why? Because companies that increase their dividend are constantly under pressure to perform well and earn a profit every year. If they start losing money, the board of directors will be forced to do something they hate to d decrease or suspend the dividend. Most avoid it like the plague, in part because it would mean a sha
