Did Dividend Growth Since 2001 Keep Up With Inflation

I want readers to understand that I acknowledge that what I've produced here is not in the strictest sense a scientific study. However, I would argue that the information presented here is far superior to what a study based on crunching a bunch of unrelated data points could produce. Even though all the companies in this report are considered dividend growth stocks, it is clear that all similarities stop there. Yes, the companies do pay dividends, and yes, many of them have actually increased their dividends, but each represents a very unique company.

Therefore, I believe that looking at each company on an individual basis provides far more insight and understanding into what individual dividend growth stocks offer individual investors, and why, than any study could ever hope to accomplish. Some of these companies did great, others generated horrible results, and the reasons why are varied from one company to the next. Overvaluation was a major culprit that affected the performance of most of these names. However, individual operating results (earnings growth rates) also varied widely from one company to the next. Finally, although survivor bias was not precisely dealt with, I thought I provided enough information to state that it is an overblown concern.

Source: Seeking Alpha

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