.svg)
Latest Business News
Four Global Companies with Consistent Dividend Growth
TEXAF: A Steadily Growing Investment Holding Company
TEXAF, a Brussels-based investment holding company with interests in real estate and mining in Africa, has consistently increased its dividends since 2007. With a dividend yield of 3.3%, TEXAF outperforms the broader market.Atrion Corporation: Stable Dividend Increases in the Medical Device Industry
Atrion Corporation, a manufacturer of cardiovascular medical devices, has been raising its shareholder payouts by double-digits for over a decade. Despite being a 79-year-old company, Atrion Corporation continues to offer a 1.5% dividend yield.Kerry Group: A Food and Beverage Company with a Positive Outlook
The Kerry Group, one of Europe's largest food and beverage companies, has a solid reputation for its dividends. Since its listing in 1986, Kerry Group has consistently raised its dividends by more than 10% since 1993. Although the current dividend yield is 1.2%, analysts anticipate a 27% increase in the share price over the next 12 months.GMO Payment Gateway: A Prominent Player in the Online Payments Industry
In a sector known for reinvestment over dividends, GMO Payment Gateway stands out as both a consistent dividend raiser and stock performer. The Japanese online payments company has seen its stock rise by over 4,000% in price returns over the past 15 years. Despite having the lowest dividend yield among the stocks screened by CNBC Pro at 0.7%, GMO Payment Gateway demonstrates strong growth potential.The Significance of Dividend Growth Stocks
Investing in companies that consistently raise their dividend per share (DPS) by 10% or more each year signals profitability and indicates management's expectations for continued growth. This consistent dividend growth benefits investors by increasing their income from investments over time, leading to significant returns. It's important to note that equities carry higher risk levels compared to safer investments like U.S. government bonds. Additionally, when a company pays dividends, it forgoes reinvesting in further growth.Conclusion: The Impact of Dividend Growth Stocks on New Businesses
Investing in companies with a track record of consistent dividend growth can have significant implications for new businesses seeking capital and investors. The four global companies mentioned earlier demonstrate the potential benefits of focusing on dividend growth stocks.
Steady Growth and Market Outperformance
TEXAF's consistent dividend increases and superior performance compared to the broader market highlight the company's ability to generate steady growth. This can be attractive to investors looking for reliable returns, making it more likely for new businesses to secure funding if they can exhibit similar growth potential.
Established Stability and Long-Term Payouts
Atrion Corporation's history of stable dividend increases despite being an older company emphasizes the importance of demonstrating longevity and consistent payouts. For new businesses, providing a clear plan for sustainable growth and a commitment to shareholder returns can instill confidence in potential investors.
Positive Outlook and Growth Potential
Kerry Group's positive outlook and consistent dividend raises over an extended period showcase the potential for long-term success. New businesses must present a vision for future growth and demonstrate their ability to deliver on that vision to attract investors who seek opportunities with strong potential for returns.
Strong Performance and Growth Prospects
GMO Payment Gateway's remarkable stock performance despite lower dividend yields highlights the importance of showcasing growth potential, especially in industries that typically prioritize reinvestment. New businesses with aggressive growth strategies and clear plans for market dominance are more likely to attract investors seeking exponential returns.
The Bottom Line for New Businesses
For new businesses, the ability to generate consistent dividend growth can significantly impact their ability to attract capital and investors. Demonstrating profitability, stability, a positive outlook, and growth potential are crucial factors in gaining investor confidence. While investing in dividend growth stocks can offer attractive returns, entrepreneurs should carefully consider the trade-offs between distributing dividends and reinvesting for future growth.
