Home Business Valero, Prudential and other dividend growers

Valero, Prudential and other dividend growers

Rich Templeton, President and CEO of Texas Instruments Inc.

Namas Bhojani | Bloomberg | Getty Images

With market volatility picking up and inflation expectations rising, many investors have an urge to find stocks with growing dividends that can shore up their portfolios.

However, not all dividends are created equal, and investors should be careful to look for companies with solid underlying financials, according to Wall Street pros.

“The financial health of a company, what our research shows, does a better job of giving us confidence that the dividend is well covered and that the company can grow that dividend over time than looking at cash dividend payments, how long a company’s paid a dividend, how often they grow those dividends,” said Christopher Huemmer, a senior investment strategist at FlexShares.