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Growth of dividend income is a cornerstone of the Osher Van de Voorde investment philosophy. The table below illustrates our core equity holdings and corresponding dividend growth rates for this year, expected for next year, average for the last ten years and projected for the next five years.   The data reveal very healthy historical trends and expectations for dividend growth.

While dividends have increased at a 14.09% annualized rate over the last ten years, growth is expected to moderate to 8.38% over the next five years. However, even at an 8.38% average annualized pace, dividend income would still double in 8 ½ years! With such stellar growth in cash payments to shareholders, the underlying stock becomes more valuable and increases the likelihood for investors to also obtain worthwhile appreciation in addition to growth of income.

In a world of repressed interest rates amidst global and political uncertainties, it is comforting to own such high quality companies that reward shareholders with an ever-increasing stream of growing dividends.