Dividend Growth Investment for October 2nd, 2025

Good Morning,

I wanted to let you know that I initiated a new position today. The company is a dividend aristocrat that has paid dividends since 1925 and increased them for 32 years in a row. The stock has been beaten down and close to fair valuation at 22 times forward and a dividend yield of 2.65%. It has grown dividends at 8.47%/year over the past decade.

I plan to build this position, subject to valuation and fundamentals, over the next few months. My initial target is roughly $500 - $1000 at cost. This all makes sense, as I invest $1,000 in new capital to this portfolio. As you know, I prefer to build out positions slowly and over time and manage risk. Managing risk is easier if you spread your investments between multiple companies and over time, but only after they meet initial criteria for fundamentals and valuation. If the story changes as I build out a position, I stop allocating new capital there. Also, if I am wrong later, I also have a maximum amount I am going to allocate to a security to limit exposure to one bad apple on overall results.

Most of you know that I am also a big fan of the coffee can approach to investing. Once I invest in a security, I stay invested for as long as possible. That is, until my exit criteria are triggered. That way I can participate in the maximum potential growth in an investment, which is potentially unlimited, while also keeping risk exposure limited to the amount I invested in the security (minus any dividends received and reinvested elsewhere).