How to find companies with solid dividend forecasts?

Reliable dividend forecasts are extremely important
for income investors

The most accurate dividend forecasts are issued by the companies themselves. Unfortunately, only a relatively small number of companies are able to forecast their dividends for the year ahead, let alone three years in advance.

How to find companies with declared
reliable dividend increases?

Considering companies with rising dividends are a way for investors to stay ahead of inflation and secure a higher income in retirement.

What we are looking for here at Early Retirement Investor are companies that pay out not just a regular dividend, but companies which are able to increase their dividends year after year.

These are likely to be well-run, profitable, companies with an established track record of increasing dividends to shareholders consistently over many years.

Why do we like companies with rising dividends?

When a company decide to increase its dividend it's signalling to its shareholders that it's confident that it will be able not just to continue paying a dividend, but also a rising dividend.

Such decisions are not made lightly. The last thing a shareholder-focused company wants to do is to create uncertainty by announcing an increased dividend forecast in one year, followed by a dividend cut the following year.

Be aware though that a dividend increase in its own right is not a 'safe' signal that it will be maintained. Just remember some of the banks having boosted their dividends for a number of years for these then to be omitted in 2008 and 2009.

As we said before dividends are not guaranteed.

Nevertheless, by considering companies able to announce accurate dividend forecasts you may gain access to steadily rising dividends over time.

Examples of company's future dividend intentions

Examples of dividend cuts and cancellations

Be aware, that as a result of some unforseen catastrophe, previously solid dividend payers may have to cut or even cancell future dividends. For instance:


1.the above mentioned companies are solely used as examples of UK listed company's future dividend intentions and are not share recommendations. Early Retirement Investor nor EMAR Publishing are registered as an investment advisor or as an independent financial advisor and do not provide individualised advice.

2.the price of shares and investments and the income derived from them can go down as well as up, and investors may not get back the amount they invested.

3.where the information consists of pricing or performance data, the data contained therein has been obtained from company reports, financial reporting services, periodicals, and other sources believed reliable. computations are not guaranteed by Early Retirement or any of the data providers and may not be complete.

5.The editor or contributors may have an interest in the share mentioned.

6.Dividend yields move up and down. As a company’s share price increases the dividend yield falls. And vice versa: if the share price falls the dividend yield increases.

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