As the strategy suggests it is key to find shares who are going to grow their dividend and have a dividend growth policy in place. No one on this earth can predict what the future holds for sure, no matter what anyone says. That said the only way we can sensibly forecast the future is based on historic trends.
As such the first place we look is the dividend history of a company. I look back over 7 years and see that the company have seen dividend growth each and every year in that 7 year span. Over this period this gives a good idea that the company pursues a strong dividend growth policy. Any stocks or shares that don't have a continued growing dividend unfortunately don't cut the grade and are discarded. The reason for this growth in dividend is so that each and every year the dividend grows all by itself without us having to do anything. Naturally you would assume from this that the share price should also increase to accommodate the increased dividend maintaining the yield at around the same rate.
