Beating The Market With Dividend Champions
I am a dedicated dividend growth investor. I believe that anybody who follows the basic ideas of dividend growth investing can be successful, no matter what investing training, experience or education they have. I also strongly believe in keeping things simple. The simpler your investment plan (as long as it is well thought out and based on sounds investment ideas), the easier it is for you to follow it and stay on track. Dividend growth investing is based on the idea that companies that have shown a commitment to growing their dividends, by increasing the dividend year after year without interruption, are the companies we should be investing in. And studies have shown that these types of stocks have not only produced excellent results in the past but have also done so with less volatility.
The Dividend Champions is a list of stocks which have raised their dividend for at least the last 25 years in a row. It was started in late 2007 by David Fish, and up until last year was maintained by him. Unfortunately, David passed away last year, but since May 2018 the list has been ably maintained by Justin Law. When a stock raises its dividend for the 25th year in a row Justin adds the stock to the Dividend Champions List ("DCL"). When one of the stocks cuts its dividend it gets removed. It can also be removed due to mergers or buyouts.
There are many ways to decide if a company is a quality company or not. In line with keeping things simple, I believe that if a company is a dividend... Read more