Many naysayers believe that a company that does not reinvest all of its profits back into the business should be sold. Even the Oracle of Omaha however is not immune to the laws of diminishing returns or investment mistakes that large capital bases high dividend investment strategy venturing in unfamiliar industries brings. Buffett is not the only famous investor who spots attractive opportunities and holds on to them, while receiving dividends.
Without sharing any of the returns that the business supposedly generated, these returns are suspect to ordinary investors, who typically have no say in the way the company operates. Most exceptional businesses have achieved an optimal balance between reinvesting profits back in the business and distributing them to shareholders. As a result they are able to throw off plenty of free cash to their shareholders, which is probably one of the reasons why investors like Buffett look for opportunities that deliver high returns on equity. 33 years in a row. Overall the ROE increased steadily over the past decade. The ROE has been increasing since it hit a low of 14 in 2002.
Coca-Cola has paid uninterrupted dividends on its common stock since 1893 and increased payments to common shareholders every year for 48 years. The Return on Equity has been in a decline after hitting a high in 2001. 38 years in a row. The return on equity has fluctuated between a low of 25. 2006 and a high of 39. This dividend champion has increased dividends for 47 years in a row.
I like to invest in quality companies, with an established track record of dividend increases. As part of my monitoring process , I review the list of dividend increases every week. The past month has been difficult for many investors. I review the list of dividend increases every week , as part of my monitoring process . Pfizer Raises Dividends, is that good or bad news? I am not providing you with individual investment advice on this site. Please consult with an investment professional before you invest your money.
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