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You have to look at how well the stock is trading. A stock that has increasing dividends might be trending upward, thus making it an intriguing stock to have.
Rocky Brands is a good example. Since 2013, Rocky Brands has had cash dividends of about 10 cents for each quarter for every share one owns in the company. This is a small amount, but it has still been consistent throughout the past few years. It shows that Rocky Brands is stable as a company. It is not necessarily growing, but it is still at a point where the business can stay afloat. Even so, the lack of growth might be something you should consider.
Now let’s return to the Brunswick Corporation. That company’s dividends have been progressively increasing in value. In 2013, the dividends were around 10 cents for each share. The total was 15 cents in 2015 and eventually 19 cents for the first dividend of 2018. The gradual increase in the BC dividends shows that the company is growing and is a more trusted option in the consumer goods sector. Even more importantly, people are bullish on the stock and will want to invest in it. This could also be reflective of how BC is increasing sales and contracts.
A stock’s dividends might decline because of a lack of sales or due to the business having some financial troubles. Stocks with falling dividends should be avoided or at least investigated further to determine why the dividends are declining in value. The best thing you can do is to check on how the value of the stock is changing alongside the dividends. This gives you a clearer idea of what is happening when looking at an investment. Rocky Brands had struggled to get outside of the same price over the years, but the company has not necessarily bottomed out. Therefore, its dividends are staying steady. Meanwhile, the progressive rise in the value of BC stock matches the dividends increasing.
