Dividends are viewed as a reflection of management confidence in the company’s earnings, balance sheet and performance potential, and dividend growers are among an elite group of dividend payers.
Furthermore, if your focus is on dividends, a good way to access higher yields may lie outside of the United States. Stocks in Europe and in international developed markets often have higher yields than those in the U.S. That means it’s possible to take advantage of a dividend growth strategy and relatively high dividend yields. International dividend growth stocks also come without the added U.S. interest rate sensitivity of high dividend paying stocks.
For more information on European markets, visit our Europe category.