Where to hunt for dividends in an uncertain world
Australian Financial Review - May 6 2020
"A dividend that is growing indicates something very meaningful: that the company’s prospects are getting stronger. And equally, a company that is declining or remaining static is saying something meaningful. We very much believe that the best dividend is a rising dividend"
Media Coverage
ausbiz - January 23 2024
The case for Costco
"We look for companies which raise their dividends consistently and rapidly every year and Costco has done so for a very long time, but Costco is a little bit unique is that from time to time they pay out enormous special dividends. Recently Costco paid a special dividend of $15, equivalent to almost four years of its quarterly dividend..."
ausbiz - December 18 2023
Promising future for Pool Corp
"Pool Corp started as a two-person operation and today occupies about a third of the North American market for pool equipment and supplies, so one in every three pools is being serviced by supply flowing through Pool Corp. The beauty of this business is that once a pool has been built it is a fairly material part of the house and its value, but it can't be left idle and must be maintained."
ausbiz - December 12 2023
A hot stock for hot weather
"We like to see a highly fragmented industry that is often overlooked, where one player dictates what goes on and still has lots of share available to take and grow into. We think about this in terms of where the company sits in the value chain of its ecosystem. In this case Watsco enjoys a privileged position where suppliers rely on it as their critical channel, and its customers depend on it for best prices, service and availability...."
ausbiz - November 28 2023
Zoetis dividend bloom
"Zoetis came public in 2013 and has grown its dividend since then at a rate of 18.4% per year compounded. As we always expect, because of the relationship between the rate of change in the dividend and the rate of change in the price, Zoeits' share price has responded by also going up 18% per year compounded over this time..."
ausbiz - November 14 2023
The power of growing dividends
"What we're really about is trying to find the most consistent, reliable, dependable dividends. But most importantly, we need these dividends to grow and grow quickly. And the reason for that is twofold..."
ausbiz - October 17 2023
Why Costco is a better buy than Walmart
"Costco adheres to all of the things that we look for, which when we distill it down, we're looking for exceptional companies that can grow their dividends very fast for a very long time, no matter what's happening in the macro environment. We believe the dividend tells the story. It cements the past or puts a stamp on what happened in the past and gives us a clue towards the future."
ausbiz - October 2 2023
Why this QSR play is more compelling than Starbucks
"We are looking for companies that have a demonstrated ability and desire to pay and raise their dividend at a rapid rate, which we consider 15% per year. There is overwhelming academic and empirically tested evidence that shows that where the dividend goes the price almost always follows."
ausbiz - September 21 2023
Why you need a dividend growth strategy
"Relatively few companies meet our criteria, which is consistent, reliable, dependable, no exceptions dividend growth, meaning a company can continue to pay and raise its dividend, rain or shine. Whether you had a Covid-19, inflation or rapid changes in interest rates, our companies continue to pay and raise that dividend. There aren't many and we have an ability to find them."
Australian Financial Review - May 6 2020
Where to hunt for dividends in an uncertain world
"A dividend that is growing indicates something very meaningful: that the company’s prospects are getting stronger. And equally, a company that is declining or remaining static is saying something meaningful. We very much believe that the best dividend is a rising dividend."
Australian Financial Review - February 6 2021
Why GameStop hasn't taken the shine of US stocks
"Serious equities investors should be looking for long-term growth prospects evidenced by “robust real unit growth” – as opposed to “price-driven nominal sales growth” – as well as a return on capital re-invested by the company. The rate at which a US company increases its dividend [is] an excellent barometer of that and a sign it might be worth investing."