In 1985 took my first job as a staff accountant with a $21,000 annual salary. Now I am over the same department that I was hired into and entry level staff accountants earn $56,500 per year. That equates to a 4.2% annual increase. Just as employees expect an annual raise, so do dividend investors.

When evaluating a company as a potential income investment you look at its calculated fair value, ability to generate cash, debt position and the net present value of its dividend stream compared alternative “safe” investments.

In sports after a player or team scores there is a celebration. Sometimes the celebration is extreme and designed to focus attention on the individual. As a kid our coaches would say, “Act like you been there before.” The Dividend Aristocrats have been there before and they have the track record.

United Technologies Corp. is an aerospace-industrial conglomerate with a portfolio including Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators and Carrier air conditioners, among other products. Linked here is a detailed analysis and commentary.

In this environment many income investors are happy to see any dividend increase. Not all companies are hiding behind the economic downturn and short-changing their dividend increases. To the contrary, PetSmart (PETM) after an extensive analysis plans to significantly increase its dividend.

Have you ever read something then paused and said well that’s stating the obvious? Then upon further reflection realize what is obvious to you may not be obvious to others. This happened to me recently as I was scanning some retirement headlines.

The last thing you want to see is a letter from the government. It is never good news. Either you are being drafted, they want more money from you or you are under investigation. In the case of Manulife Financial Corp. (MFC), Canada’s largest insurance company, it was the latter.

Cardinal Health Inc. is one of the leading wholesale distributors of pharmaceuticals, medical/surgical supplies and related products to a broad range of health care customers. Linked here is a detailed analysis and commentary.

When it comes to selecting dividend stocks, one of the most important items to look for is consistency in raising dividends. Sure it is easy to increase dividends when the economy is booming and business is good, but to be consistent a company has to increase dividends during the tough times.

If the goal of dividend investing is to find and buy dividend stocks that will continue to raise their dividends, it is not enough to only look at a company’s free cash flow . Many companies generate significant free cash flow, but often that cash is already spoken for in the form of debt.