It is one of the most popular and time-tested stock market investment strategies. It is dividend growth investing, or DGI, which is a strategy that focuses on companies that consistently increase their dividend payouts each year, supported by the predictable long-term growth of earnings per share. The recent success of this strategy, coupled with the yield-starved zero interest rate environment over the last several years has attracted scores of new dividend growth investors, both young and old. But with so many newcomers to the strategy, it raises an important question. While you may have fully bought into the approach over the last few years, are you a true dividend growth investor? And are you truly ready to not only withstand, but capitalize on the potential risks that may lie ahead.
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