Increased Dividend Payments in a Recession
Even in the midst of macroeconomic distress, some companies manage to dependably produce a sufficient level of positive cash flow to increase the dividends that they pay out to investors. As the below article from Kiplinger mentions, “…if dividend hikes are a sign of fiscal strength during normal times, they are a downright bold statement when they’re made in the middle of a recession.”
These companies are worth noting for investors who are interested in the cash flows that dividends provide for reinvestment and income strategies.
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- Anthony Winkels is Managing Partner and Wealth Advisor at Fortis Wealth Management