Dividend Growth


The goal of the dividend growth portfolio is to build a rising stream of dividend income and take advantage of the eighth wonder of the world; compounding interest. In our selection process, we identify strong businesses that have little to no debt and excellent track records of increasing their dividend payouts.

Industry Champions

Many of our holdings lead their industry and enjoy sustainable competitive advantages.

Consistent Dividend Growth

Our holdings have an outstanding track record of dividend increases and in some cases special dividend payouts.

Strong Balance Sheets

Cash is king. We prefer companies that have little to no debt and consistently generate strong free cash flow.

The Power of Compounding

The scenario below shows the non-linear characteristic of successful dividend growth investing. Our portfolio takes advantage of dividend reinvestment and dividend growth while our subscribers must take advantage of another very important metric for growth which is consistent reinvestment of capital. With these three elements you are left with an income generating machine which will compound value over time. In fact, when dividend income is your goal, flat or bear markets can actually benefit you because your reinvestment of capital and dividend reinvestment is at a lower cost basis.

Why Now?

Not only in the US, but globally, the percentage of the population aged 65 and over is increasing. This means there will be a sustained demand in the next several decades for income generating investments (like dividend paying stocks). Additionally, the US stock market has been on a tremendous bull run and dividend growth investing is a lucrative option for flat and bear markets. Patient investors can use this as an opportunity to build up their positions in quality dividend growth stocks – such as many of the holdings we recommend in our newsletter.

What Traps to Avoid

A strong argument for dividend growth investing is that this is generally regarded as a very passive way to manage a portfolio. Our approach is an actively managed dividend growth investing portfolio where our subscribers receive a live “buy” or “sell” alert whenever we make a change in our portfolio. When investing in dividend stocks one important metric to look at is Payout Ratios. In this example below you will notice that General Electric (GE) had a huge spike in their Payout Ratio in 2015. This is where we see a benefit to an active management approach. This was a big signal that their dividend was under pressure and a wise investor would not have to wait until the announcement in 2017 to sell. In 2017 GE announced they were slashing their dividend (and also they had a dramatic decrease in share price).

Why Choose Us

You will have full transparency to everything we own in our dividend growth portfolio, you will receive a monthly newsletter with research ideas and insights, and you will be notified the same day if we make any changes to the portfolio. All you have to do is follow along.