Friday, December 27, 2013 10:07:42 AM
When dividends go up, the stock becomes more attractive to buyers. That increased demand will cause sellers to raise the price to gain more profits. If you hold this dividend stock, the share price will go up as the dividend rises. Investors generally consider rising dividends a sign of a company's good health. Always make sure the company that issues the dividend stock reports growing profits along with the increased dividend. Avoid companies that raise their dividends without increased profits to make their stock look more attractive, because those companies may not be able to pay the increased dividend over time.
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