The Dividend Mailbox®

Explore the power of compounding through the insights of economist Jeremy Siegel. Discover how underperforming sectors can yield surprising returns over time. Learn about the contrasting performances of iconic companies like Standard Oil and IBM and how consistency beats flashiness. Gain strategic tips on managing your portfolio for maximum dividend growth and long-term success. Find out why slow and steady might just win the race in investing!

More on dividend growth investing  -> Join our market newsletter!Check out our Union Pacific Investment ReportOver 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 resilience in a politically incorrect landscape, including its recent Hess acquisition. He explores the intersection of environmental concerns and the indispensability of oil in everyday life, with investing as the backdrop. Despite the industry's challenges, he makes a compelling case for Chevron's sustainable dividend growth and long-term potential.Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

More on dividend growth investing  -> Join our market newsletter! Check out our Union Pacific Investment ReportDo 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 line between companies that pay a healthy dividend and companies that are in a dysfunctional dividend mindset. As part of that, Greg gives you two simple models to employ when you're considering a company's dividend-paying capability. Later he takes a moment to discuss some of the wisdom of the late Charlie Munger.  Models used in today's Episode:ROIC Model - (Excel download) Excess Cash Flow Model - (Excel download)DCM Investment Reports & Models - (Website)Happy Holidays from The Dividend Mailbox!Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

More on dividend growth investing  -> Join our market newsletter!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 discipline to let it grow. Moreover, he makes the case that income growth, rather than price growth, has a larger impact on the long-term value of your portfolio. Later, he likens the mindset of dividend growth investing to Odysseus's voyage.Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

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 attractive returns, it is not what a company does that is important, it is how well they do it. In this episode, Greg embarks on a deep dive into Union Pacific Railroad ($UNP) and the broader railroad industry. He makes the case that railroads are extremely predictable, well run, and have provided investors with decades of market-beating returns. Railroads are probably not your first idea for building wealth, but these companies are cashflow-compounding machines. This episode is a little bit deeper than we have gone in the past, but it makes for a compelling story. Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

More on dividend growth investing  -> Join our market newsletter!Is there a difference between being intelligent and being smart? Most people would think of 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 due to an overreliance on numbers, data, or rules, and not enough on vision.For our 27th episode, Greg takes a step back and examines a recent blog post from Morgan Housel. He starts out by contrasting intelligence vs. smarts, then uses several examples to show how it relates to investors. He applies this mindset to everything from analyzing America’s deficit problems, to honestly reflecting on his own thought process when he sold Intel ($INTC) several months ago. Greg wraps up the episode by introducing a new stock idea, United Pacific ($UNP), and sets the stage for a deeper dive next month.Links referenced in today’s episode are below:Morgan Housel's blog -> Intelligent vs. SmartGreg's newsletter on America's Debt and Deficits -> Debt, Denial, & Illusions: America Has a Spending ProblemSend us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

Dive into the world of dividend growth investing and discover a formula with seven key factors for identifying great opportunities. Learn how essential metrics like return on invested capital and management quality play a role in sustainable growth. The hosts analyze Dover Corporation, showcasing its dividend strengths while discussing potential challenges. They emphasize the importance of patience and discipline, reminding listeners that not every company fits the mold for ideal investments.

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 zeros. The problem for investors is that there is no quantifiable way to know what legal liabilities might be lingering out there. This episode is packed with specific companies as Greg dives into two stocks from the tobacco industry and two from the telecom sector. He examines the legal history of British-American Tabacco ($BTI) and Altria ($MO), alongside the potential future liability of AT&T ($T) and Verizon ($VZ). In doing so, he also breaks down their performance as companies and gives you a snapshot of how we analyze dividend growth candidates. Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

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 performance is almost always ill-advised. Of course, having discipline is easier said than done, but gaining perspective can help.  In this month’s episode, Greg zeros in on how discipline and dividend growth are one and the same. He breaks down some of the largest wealth creators in the market and examines what exactly is driving the current market rally. He discusses the importance of knowing why your portfolio is performing the way it is but stresses that short-term performance is unimportant for the bigger picture. Later, he looks at a few dividend growth ETFs and finishes the episode with a listener’s question about investing from abroad.  Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X

More on dividend growth investing  -> Join our market newsletter!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 nonetheless on edge. That has presented the long-term investor with an opportunity 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 candidates worth analyzing.  Considering the sell-off in the banking sector, Greg presents a new investment idea to add to our model portfolio. He makes the case that M&T Bank ($MTB) is conservatively managed and poised for continued dividend growth, even in rough seas. Later he explains why we sold a third of our Clorox ($CLX) position and addresses a listener’s question about cash investments. Send us a text If you enjoy the show, we'd greatly appreciate it if you subscribe and leave a review RESOURCES: Schedule a meeting with us -> Financial Planning & Portfolio Management Getting into the weeds -> DCM Investment Reports & Models Visit our website to learn more about our investment strategy and wealth management services. Follow us on:Instagram | Facebook | LinkedIn | X