There’s no shortage of reasons investors love dividends. Besides the cash flexibility they provide, these payouts act as cushions during market swoons and amplify returns over long holding periods when you reinvest the income.
A dividend hike is also a useful sign for income investors, since it usually reflects expanding growth opportunities for the business, improving profitability, or both.
With that in mind, let’s look at three dividend stocks that raised their payouts in recent weeks: Nike (NYSE:NKE), McCormick (NYSE:MKC), and Costco Wholesale (NASDAQ:COST). Here’s why these stocks look like solid long-term investments today.
Nike routinely announces its annual dividend increase in November, and this boost was its 19th consecutive hike. But there were some additional factors that made this year’s raise worth following. The sports apparel titan endured collapsing revenue during the COVID-19 closures, meaning