Dividend Growth Investors Have Woken Up To The Real Smell Of 'G'

This article is in response to Mr. Brian Grosso's article entitled "Dividend Growth Investors, Wake up!" In it, Mr. Grosso generalized that many if not most dividend growth investors ignore valuation and focus too heavily on large cap stocks. I also got the sense that Mr. Grosso does not comprehend the dividend growth investing strategy. He himself stated that he has warmed up to dividends. I get the impression this is much like someone warming up with their morning cup of coffee. I do not think he has drunk enough coffee yet to wake up and comprehend the actual purpose dividends play in dividend growth investing. It may have something to do with the impression I got while reading his article that, although it was not written, he is growth or total return oriented and enjoys receiving dividends if his investments provide one. He acknowledges their importance but fails to recognize why they are the basis of dividend growth investing. Finally, Mr. Grosso encourages dividend growth investors to move towards small cap stocks that pay dividends and offers investors a few "new" ideas. I am going to take the opportunity to expound on some of the written and unwritten points offered by Mr. Grosso.

What is Dividend Growth Investing?
This is almost an impossible question to answer because everyone is capable of practicing it in their own way. The basic premise is that dividend growth investors invest in companies that pay and grow their dividends annually... Read more