1: Dividend Champions for 2022
The following table breaks down the list of US companies with a 25+ year record of annual dividend increases. The columns include dividend growth rates over the past 1, 3, 5 and 10yr periods. Many people use this information because they prefer to invest in companies with a consistent track record. Of course, track records can be (and have been) broken.
Source: DividendGrowthInvestor.com
2: Rising rate forecasts have consistently been wrong
The chart below shows interest rate forecasts made by economic professionals at certain moments (dotted line) and actual interest rates (solid line). As you can see, the forecasts were wrong more often than they were right.
Source: Deutsche Bank
3: Rising interest rates don’t necessarily destroy wealth
The table below looks at stock market performance during previous rate cut and rate hike cycles. Rate hike cycles were marked by strong equity market performance. This occurs for two reasons: 1) interest rates rise in strong economic environments so cashflow growth may outpace the detrimental effects of higher cost of capital, and 2) actual rate increases tend to lag investor expectations, so effects from higher rates get incorporated into the market long before rates begin to rise.