Two Smaller Dividend Payers Worth a Longer Look

Many dividend investors naturally have a big portfolio allocation for large-cap stocks. Large-cap stocks are generally corporations that have been around for a long time, have huge revenue streams, and have an established and impressive record of dividend payments to shareholders, so it’s only normal that dividend investors (including me) will be attracted to them. When looking for companies with very long records of increasing dividend payments, the list will include many large companies. With decades of dividend growth, how could they not be large? And yet, when we look at one of these large companies, and in particular large companies that provided above-average total returns to shareholders for several decades in a row, what we’re really looking at is the history of a transition from a great mid-cap stock into a large-cap stock. If they have several decades of impressive growth, then chances are, they were not very large so many decades ago.... Read more