Saturday, January 9, 2016

Riding with the Kings

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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