It has been shown that dividend paying stocks outperform non-dividend payers. And those that have paid out increasing dividends for 25 consecutive years are collectively referred to as Dividend Aristocrats. There is an even more select group of Dividend Kings, with at least fifty years of rising dividends. Only very solid companies can pull off such a feat, and a group of them would make for a strong portfolio.

What about a company that has paid increasing dividends for only 24 years? Should we arbitrarily exclude it from consideration? What about a 19 year track record of increasing divvies? There are many companies on their way to Dividend Aristocrat status but don’t yet qualify for that elite club. I call them Dividend Princes. They may still have more growth left in them than a Coke or McDonald’s, while maintaining solid financials and top-notch management. It would be worth poking around in the bushes to find them.

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