To The Moon

$Lockheed Martin(LMT)$ $Avient Corp(AVNT)$ $Northwest Natural Gas(NWN)$ I’m often struck by how misunderstood long-term compounding truly is. So let’s walk through a powerful example that illustrates just how transformational time, discipline, and reinvestment can be.

Imagine that you retired in 1985 with $100,000 and a paid-off home. You lived off dividend income, Social Security, and enjoyed your retirement years. You spent the dividends but kept the portfolio invested.

In your first year, you generated almost $4,000 in annual dividend income. Fast forward to 2024, and your annual dividend income is now over $37,000.

Meanwhile, your portfolio quietly compounded in the background. By 2025, you pass away with a portfolio worth $3.2 million. An astonishing 97% of that net worth growth occurred during the 40 years of your retirement.

📊 Annual Dividend Income Growth (1986–2024)

💼 Portfolio Value Growth (1985–2025)

This is where many misunderstand the story. Every time I share scenarios like this, someone inevitably comments, “They didn’t enjoy their money.” That comes from a fundamental misreading of compounding and how long-term stock returns actually work.

They see $3.2 million at the end and assume that money was always there, so in their minds, “they should’ve spent more.” But that $3.2 million didn’t exist at the start. If this retiree had “spent more” in the late 1980s, they would have run out of money within a decade and ended up with nothing.

Instead, they enjoyed decades of freedom. They lived in their own home, received Social Security, watched their dividend income rise year after year, and perhaps even had a corporate pension. They travelled, spent their income, and lived life on their terms, all while their portfolio worked quietly in the background.

To most people, having $1 million means spending $1 million. To smart investors, having $1 million means commanding a tireless army of dollar soldiers that generate income 24/7, so you don’t have to. That’s the real power of compounding.

This is a thought exercise I revisit from time to time. It’s a simple story, but it captures why patience, discipline, and letting time do the heavy lifting can change lives.

Stories like this are why I pay close attention to dividend growth. Compounding works best when the underlying businesses consistently raise payouts over time, supported by real earnings power. With that in mind, here are four companies that just announced dividend increases last week.

📈 Four Dividend Growth Companies Just Announced Raises

I’m also monitoring current dividend growth stories. Last week, four companies with impressive histories of annual increases announced new hikes. Dividend streaks are a great screening tool, but it’s the earnings and valuation context that matter most.

📊 Avient Corporation (AVNT)

Quarterly dividend raised 1.90% to $0.275. Fifteenth consecutive annual increase. Ten-year dividend CAGR of 10.44%, but earnings have grown slowly from $1.65 in 2015 to $1.86 in 2024, with 2025 estimates at $2.80. Valuation is 10.85× forward earnings with a 3.62% yield. A strong yield, but EPS acceleration is needed to sustain real dividend growth.

🔥 Northwest Natural Holding Company (NWN)

Dividend raised 0.50% to $0.4925. Seventieth consecutive annual increase. Ten-year dividend CAGR of 0.53%. Earnings grew from $1.96 to $2.03 between 2015 and 2024, with a $2.91 estimate for 2025. Valuation is 15.32× forward earnings with a 4.40% yield. A remarkable streak, but nominal growth that barely matches inflation.

🛰️ Lockheed Martin Corporation (LMT)

Dividend raised 4.50% to $3.45, marking the 23rd consecutive annual increase. Ten-year dividend CAGR of 8.20%, supported by EPS growth from $11.62 in 2015 to $22.39 in 2024. EPS is projected to slightly decline to $21.92 in 2025. Valuation is 23.04× forward earnings with a 2.73% yield. This is the smallest dividend hike in 23 years, signalling caution despite a strong long-term record.

🚐 Thor Industries (THO)

Dividend raised 4% to $0.52. Sixteenth consecutive annual increase. Ten-year dividend CAGR of 7.30%. EPS has moved from $4.89 in 2015 to $4.87 in 2024 and is projected to decline to $4.08 in 2025. Valuation is 24.35× forward earnings with a 2.10% yield. Dividend growth is now running ahead of earnings capacity.

These updates highlight that a long dividend streak isn’t a substitute for earnings power. It’s earnings growth, payout discipline, and valuation that drive sustainable dividend compounding.

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