Tracking large dividend increases leads to larger long-term gains
Consistent dividend growers can be used to flag strong longer term investments. Such is the case with homebuilder, Pultegroup, which has been raising its dividend by 7% at a time while also doing stock buybacks. Over the past 12 months, the company's share price has increased by almost double.
In 2021, they raised their dividend twice, and did a stock buyback. At the end of 2022, they increased their dividend again and in 2023 they did a stock buyback. This pattern of rewarding shareholders again and again with cash back drives stock price action up while also signaling confidence in the company's future.
The problem has been, until LevelFields, that it's hard to track these kinds of events at scale in any strategic way. Most people rely on news outlets to find this information, and they do, about 40% of the time. But news outlets are looking to get more web visitors so they can sell more ads at higher prices, and this means they are more interested in covering the big companies everyone is interested in e.g. Tesla, Apple, Amazon, Microsoft. Often though, it's the smaller or more obscure companies that are silently crushing it.
LevelFields alerts enables users to track key events and identify patterns quickly when companies are repeatedly returning capital to shareholders. It's as easy as clicking the on button for a set of events, we call scenarios. Or, if you like, you can filter the alerts by the company's financials, sector, industry, or other attributes to be alerted only to opportunities you want to know about - directly from the companies themselves.
Using multiple events to mark longer term investment opportunities can identify amazing under the radar companies, like PHM. But if you want to find them, you need a little help and that's where LevelFields' AI comes in.