At Active Passive we invest in a variety of companies. Several
holdings include dividend kings. A dividend king has increased
dividends for at least 50 years in a row. See the list of 2016 kings
over at DGI.
No
cuts, no misses. In such a time frame, there are several recessions,
and other market and world events that affect businesses.
For a company
to make it through those while increasing dividends, means their
business model is solid. Their management knows how to weather storms.
And paying shareholders is a priority. If it were not a priority the
dividends would have been an easy target to get extra funding.
That
does not mean the Kings are no brain investments. Payout ratio's could
have risen over the years and the dividends may no longer be sustainable
in the future. Still, it feels somewhat comforting that my portfolio
includes several Kings: PG, CINF, JNJ.
This means these stable
companies can be expected to raise dividends for some time to come.
They take care of the 'passive' part of the Active Passive approach.
We continue to actively look for other investments as well.
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