Dividend growth investing is a strategy that focuses on investing in companies that have a history of increasing their dividends over time. The idea behind this approach is that companies that consistently increase their dividends are financially stable and have a strong business model, which can lead to long-term capital appreciation.

When investing in dividend growth stocks, investors typically look for companies with a track record of increasing dividends for several consecutive years. They also look for companies that have a strong balance sheet, steady earnings growth, and a sustainable business model.

The goal of dividend growth investing is to receive a steady stream of income from dividends, while also capitalizing on the long-term growth potential of the company. This approach can be especially appealing for investors who are looking for a more passive investment strategy and who want to generate income in retirement.

It’s worth noting that dividend growth investing is not without risks, and it’s important to conduct thorough research before making any investment decisions. Dividend growth investing may not provide the same level of returns as other more aggressive investment strategies, but it can provide a more stable and secure investment approach in the long run.