Dividend Growth Investment for August 3, 2026

Good Morning,

I wanted to let you know that I just added to a position that I initiated last month. The stock sells for 23 times last years earnings, yields 1.50% and has a 5 year annualized dividend growth rate of 15.26%. I expect a dividend increase announcement later this month.

Long-time readers know that I tend to build positions slowly, and over time. This tends to spread the risk. I also tend to limit exposure at cost at a couple of phases, just so to avoid putting too much at risk in a position that looks promising and I am confident about, but the data actually changes and I turn out to be wrong. In the case of Intuit, the business seems fine, but the market seems to disagree as it has punished the stock price with relentless selling. I will keep building this position, until I reach roughly $500 - $1000 at cost. Then I will step back, and look around to see how the business does perform in the near term, how the valuation does, and if their rate of dividend increases does keep up or not (dividend signaling).

Note that changes in fundamentals for the worse will result in me not building a full position (for the purposes of this newsletter, with the limits imposed of investing $1k/month, a full position is $2,000 at cost). By buying slowly and over time, I protect myself in the case I am wrong, and the fundamentals show I am getting myself into a value trap, or a melting ice cube or stepping on quicksand ( I can keep going, but I do not want to bore you more than the necessary usual amounts I provide to you).

Also note that changes in valuation, where a security becomes overvalued would prevent me from adding further to it as well. This is the downside of my approach because in a roaring bull market dips are quick. In a bear market however this tends to provide some protection. Note that we tend to spend more time in a bull market than in a bear market. However, fundamental impairments can occur in a bull market, an economic expansion as well as in a bear market and an economic contraction.