Dividend Growth Investment for April 20, 2026

Good Morning,

I wanted to let you know that I initiated a new position in a dividend champion, which has increased dividends for 33 years in a row. I have watched this stock for several years, but sadly, it was always selling at nosebleed valuations. I do not want to pay 50 times earnings, even for the best of the business models.

Back when this stock sold at nosebleed valuations, the sky was the limit. The issue with excessively high valuations however is that the smallest issue has a very big impact on the stock price. That’s because valuation compression can really sink a stock price, even if fundamentals are only experiencing a temporary bump on the road.

This is essentially what happened to this stock over the past year or so. Growth slowed down. Based on my review, and management, it sounds as if this is a temporary, timing issue. I do believe that this could turn out to be a bigger and longer issue. But if that happens, then the valuation would get even cheaper, so buying on a periodic basis, which is what i do, would turn out fine.

Based on the review and research I have done, there could be a long-term trend that could benefit the company’s business. That being said, there could be some pain, before the long-term arrives.