BAE Systems announced their year end results on Thursday, which showed an increase in orders received and order backlog, plus an increase in Operating Profit (on a constant currency basis). The important bit from my point of view is that they also increased their dividend, which although this was only by 2%, it is still an increase.
As a result of this dividend increase I have effectively received this pay rise without having to expend any effort, or having to turn up in one place each workday, so as a result I have received £470 in dividends in the last twelve months, and if they match the 2% rise next year I will receive nearly £480 in dividends.
Although this increase is not a huge increase, there are companies who are raising their dividends significantly (see post on BHP Billiton’s increase), so overall I should receive total increases that beat inflation.
In addition to the dividend increase, the share price of BAE Systems has increased by around 25% in the last 12 months, which as I am approaching the time when I will be taking cash out of my FIRE Engine will increase either the amount I can withdraw each year, or the length of time before I will have used up all of the value of my FIRE Engine.