Dividend Growth Investment for October 6, 2025

Good Morning,

I wanted to let you know that I invested in another position today. It is an existing holding, which has been somewhat beaten down recently. In other words, the stock sells at a good valuation today of 22.70 times forward earnings and a dividend yield of 3.50%. The company has raised dividends for 15 years in a row and also has a 5 year annualized rate of dividend growth of 15.50%.

Ultimately, returns are a function of:

1. Dividends

2. Earnings Per Share Growth

3. Change in valuation

As a long-term investor, I look for quality companies that grow earnings and dividends, and try to acquire them at a good price. Afterwards, the goal is to sit back, and let the power of compounding do the heavy lifting for me.

I expect to be wrong 40% - 60% of the time, but I do expect that I will be right on the remainder. The remainder of winners will more than compensate for any losers, and then some. I rarely know which of the companies will be the biggest successes, which is why I take a lot of shots, I diversify, and I hold for as long as possible. I also manage risk by limiting downside, but letting the upside grow with as little limitation on my end as possible.