21 Mar Dividend Investing
We are pleased to share a short video with you today about dividend investing.
There are many “styles” that investors follow to help guide their investment buying and selling decisions. These styles include value, growth, growth at a reasonable price (GARP), indexing, momentum, and dividend growth. Each has different characteristics, and each will perform differently over varying market conditions. It is difficult to point to one style as the outright and clear-cut winner, they are just simply different. Dividend growth investing is a strong pillar in our client’s portfolios because of its proven consistency and tendency to produce higher than average returns. Portfolio managers that use a dividend growth style tend to buy companies that either have track record of consistently paying a dividend or consistently increasing their dividend. Companies that can consistently pay dividends every quarter to their shareholders tend to be high quality businesses with stable and repeatable business models that are able to generate a lot of free cash flow. Dividend paying companies tend to have more stable stock prices and often these companies generate higher returns over time. Today’s video will help you understand a little better what dividend investing is and why it is one of our preferred strategies.
As always, if you have any questions, please don’t hesitate to get in touch.