More on dividend growth investing -> Join our market newsletter! The last time the S&P 500 dividend yield was sitting at 1.17% was in February of 2001. Many investors remember the stretched valuations 23 years ago, and even more so, how the following year proved to correct that exuberance. While stock prices are currently hovering around all-time highs, us dividend growth investors targeting a yield of 2.5-3% may find challenges in this environment.Given this, and the uncer...

More on dividend growth investing -> Join our market newsletter! The corporate lifecycle is an important yet often overlooked factor in investing. Like all things, companies age over time, with each phase having its own pros and cons. In this episode, Greg explores the corporate life cycle's impact on dividend growth investing. Using research from Morgan Stanley and Aswath Damodaran, he covers various stages of a company's life, including startup, young growth, high growth...

More on dividend growth investing -> Join our market newsletter! When a company’s stock price has struggled for years, a change in management may be just what it needs to get back on track. Even still, new management can’t fix everything. Historically, Starbucks has been an impressive growth story, generating phenomenal wealth for investors. Despite its profitability and strong cash flows, recent challenges have raised questions about whether those days are long gone...

More on dividend growth investing -> Join our market newsletter! In our August episode, Greg interviews longtime friend and fellow financial advisor Kent Hughes. Kent has worked in the industry for over 40 years, focusing his investment strategy on quality and market indices. During his career as an advisor, Kent's expertise has earned him placement on both the Forbes and Barron's Top Wealth Advisor lists. Greg and Kent begin the episode by discussing the evolution of the...

More on dividend growth investing -> Join our market newsletter!In this episode of The Dividend Mailbox, Greg takes an in-depth look at Snap-on (SNA), a company with a rich history of tool innovation and consistent dividend payments since 1939. He discusses the company's evolution from automotive tools to specialized equipment for various industries, its unique franchise model, and its financing arm. By examining Snap-on's business model, financial performance, valuation, manag...

More on dividend growth investing -> Join our market newsletter! To start our fourth year of The Dividend Mailbox, Greg is joined by Daniel Peris, author of The Ownership Dividend: The Coming Paradigm Shift in the U.S. Stock Market and Head of the Income and Value Group at Federated Hermes. Daniel's deep historical perspective and expertise offer valuable insights into the future of dividend growth strategies and the importance of sustainable dividend investing.Their conversation cov...

More on dividend growth investing -> Join our market newsletter!In today's episode, Greg dives into a practical application of our dividend growth strategy by discussing a recent buy, a watch, and a sell. He starts the episode with Hershey (HSY), exploring why this classic chocolate maker made it into our portfolio despite soaring cocoa prices. Although it may sound like a boring name, companies like this can generate outsized long-term returns. For the watch candidat...

More on dividend growth investing  -> Join our market newsletter! Between immediate information from the internet and minute-by-minute stock quotes at your fingertips, investors appear to be more infatuated with price appreciation than anything else. In contrast, prior to the 1990s, investors primarily focused on earning returns through a cash flow of dividends. Even though there has undoubtedly been a shift from cash-focused investing to a market fixated on price performance, dividends...

More on dividend growth investing  -> Join our market newsletter! Check out our Union Pacific Investment Report In most cases, holding quality stocks for the long term tends to play out in favor of the investor. However, if a company’s prospects change, there are situations where exiting a position can be warranted.  In this episode of the Dividend Mailbox, Greg outlines our decision-making process behind selling off a portion of our IBM position. What started as a turnaround play...

More on dividend growth investing  -> Join our market newsletter! Check out our Union Pacific Investment Report In this episode, Greg analyzes the wisdom of renowned economist, Jeremey Seigle. Between his investing classic "Stocks for the Long Run," and "The Future for Investors," Siegle maintains that you don't need high growth numbers or a flashy industry, only consistent growth. Although it is seemingly counterintuitive, Seigle presents the power of compounding from a new perspective....

More on dividend growth investing  -> Join our market newsletter! Check out our Union Pacific Investment Report Over the past decade, the oil industry has become increasingly controversial and subsequently neglected by investors. No one knows when the industry's expiration date will come due, but there are great value and dividend growth investments to be made in the meantime. Even in declining industries there can still be big winners.  For episode 31, Greg focuses on Chevron's...

More on dividend growth investing  -> Join our market newsletter! Check out our Union Pacific Investment Report Do you feel confident that the dividends in your portfolio are healthy? What techniques can you use to get a clearer picture of a company's long-term dividend growth prospects? This month, Greg examines a simple 3 decision model from Aswath Damodaran to determine how companies create value for shareholders, and what it means for you as a dividend growth investor. He draws the...

There is a huge difference between understanding compounding, and actually understanding the numbers behind it. As a blanket term, compounding is thrown around in the investment arena often. Yet few investors are actually patient enough to experience its full potential. Creating real wealth takes time, discipline, and strategy. In this episode, Greg uses our model portfolio to look at a couple of examples that expose just how significant your portfolio income can be when you have the...

More on dividend growth investing  -> Join our market newsletter! To most investors, big returns are associated with exciting stories or cutting-edge technology. Since everyone is in the market to make as much money as possible, “boring” companies can be easily dismissed without much second thought. That line of thinking is straightforward enough but it may be misguided. Truthfully, some of the better-performing companies out there are actually pretty boring. When it comes to achieving...

More on dividend growth investing  -> Join our market newsletter! Is there a difference between being intelligent and being smart? Most people would think o those concepts as one and the same. Although it may be abstract, these are two separate schools of thought entirely. You may go so far as to characterize intelligence as left brain thinking, and smarts as right brain reasoning. How does that apply to investing? If you’ve ever regretted an investment decision before, it may have been...

More on dividend growth investing  -> Join our market newsletter! Do you ever find yourself looking for that one crucial piece that would make you a better investor? When you look at the impressive track record of great investors, it can feel as though they know something you don’t. Being active in the market naturally drives investors to want to compare notes. Is there a formula? What’s the silver bullet?    In this episode, Greg reveals seven key factors that he looks for in a good...

More on dividend growth investing  -> Join our market newsletter! Even though dividend growth stocks typically have a high degree of predictability, that doesn’t mean you can’t end up with surprises. Outside dividend cuts, some of the most significant surprises can come from legal liability - often arising from the distant past. Companies routinely face challenges in the courtroom and are well-equipped to handle their cases, but occasionally they are forced to cut a check with a lot of...

More on dividend growth investing  -> Join our market newsletter! If you want to be a successful long-term investor, you must know your discipline and be willing to stick to it. All investing strategies come in and out of favor in the marketplace and they ebb and flow over time. In 2022, we saw high growth and tech companies underperform, while dividend growth companies held up well. So far in 2023, we’re seeing the opposite. However, switching your investment strategy based on short-term...

By now, almost everyone has heard of the turmoil in the banking sector. The current scenario is much different from that of 2008 yet investors are nevertheless on edge.  That has allowed the opportunistic investor to scoop up well-managed banks at an attractive price. But buyer beware, there is a big difference between the haves and the have-nots. Although there may very well be more turbulence in the short term, there are a few ideal candidates that are worth analyzing.    Considering the...

In this month’s episode, Greg sits down with Jeff Weniger, Head of Equity Strategy at WisdomTree. For the unfamiliar, WisdomTree is a fund and ETF manager with roughly $90 billion in assets under management. What makes WisdomTree’s funds special is that most of them focus on dividend and dividend growth strategies. One of their largest funds is the US Quality Dividend Growth Fund ($DGRW), which incidentally is our largest core position and is one we have mentioned over past episodes. Among...

In this month’s episode, Greg sits down with Jeff Weniger, Head of Equity Strategy at WisdomTree. For the unfamiliar, WisdomTree is a fund and ETF manager with roughly $90 billion in assets under management. What makes WisdomTree’s funds special is that most of them focus on dividend and dividend growth strategies. One of their largest funds is the US Quality Dividend Growth Fund ($DGRW), which incidentally is our largest core position and is one we have mentioned over past episodes. Among...

More on dividend growth investing  -> Join our market newsletter! Most of the time, using the screening criteria that are characteristic of good dividend growth companies weeds out the bad apples. When you buy companies that have low debt, attractive yield, high return on invested capital, etc., it can feel like you’ll be cashing those dividends forever. However, companies inevitably run into challenges, and you might get a surprise. If you invest long enough, you’ll eventually find...

More on dividend growth investing  -> Join our market newsletter! **NEW** If you submit a question to us and we use it in an episode, we will send you an official The Dividend Mailbox  Yeti® Tumbler -> Email us at [email protected]. When the goal is to compound wealth for decades, there is a significant difference between dividend growth and sustainable dividend growth. While the difference is obvious enough, they are two distinctly different investments and should be treated as...

More on dividend growth investing  -> Join our market newsletter! Heading into 2023, it seems as though the word recession is on the tip of everyone's tongue. At first thought, a recession might make you grimace, but what do they actually mean in real terms for an investor? Truth be told, you never know you're in a recession until after the fact, but it is essential to understand how they affect the economy. If you're a long-time investor, 2008 and 2001 were painful examples of just how...