The Power of Consistent Investing

Good Morning,


I am a long-term buy and hold investor who builds their diversified dividend growth portfolio slowly and over time. I believe that building my positions over time through consistency, discipline and sticking to my strategy is what has helped me in identifying and achieving my long-term goals and objectives. (or at least working towards them, and seeing the progress in real time, over time). I like the Dividend Growth Investment strategy, because it helps me identify quality companies that I can then acquire at good prices.

Only a certain type of company with good copetitive advantages can afford to not only grow the business, but also commit to growing annual dividends for more than a decade. That dividend imposes discipline on management to focus on high ROI projects, and distribute everything else to shareholders. The fact that these companies are able to commit to a consistent annual dividend shows me that they have the type of business that can support them, which is less cyclical than your average business. Only the ones with strong competitive advantages can afford to pay a consistent dividend that can also increase over time. I like the signaling effect of a policy of regular dividend increases, as this speaks to the type of business and management estimates about the business as well. Requiring a ten year track record of annual dividend increases weeds out most cyclical and speculative companies, and focuses the intelligent investor onto promising companies with lasting advantages. This is how long-term wealth is built in the stock market. 

I wanted to let you know that I added to three existing positions just now.