More on dividend growth investing  -> Join our market newsletter!

Most of the time, using the screening criteria that are characteristic of good dividend growth companies weeds out the bad apples. When you buy companies that have low debt, attractive yield, high return on invested capital, etc., it can feel like you’ll be cashing those dividends forever. However, companies inevitably run into challenges, and you might get a surprise. If you invest long enough, you’ll eventually find yourself with a dividend that’s been cut and a once attractive investment that has soured. The good news is if your portfolio is structured properly, not even dividend cuts get in the way of growing your income every year.

On another note, one factor that greatly influences the security of a dividend is debt. Given everything that has happened in the market recently, and with a liquidity crisis in the banking sector, debt has become a hot topic. It is extremely important to understand how debt functions for a company, especially in an environment with rising interest rates.

In this month’s episode, Greg takes you on a deep dive into Intel ($INTC). He looks at why we originally bought it, the problems they ran into, and why they recently cut their dividend. He even lays out why it may do better in a couple of years. Later, He uses a couple of different examples to show how debt can be good, bad, or indifferent.

Send us Fan Mail

________ 

Resources:

📅 Schedule a meeting: Financial Planning & Portfolio Management
📊 Getting into the weeds: DCM Investment Reports & Models 

________

If you found this valuable, subscribing and leaving a review helps more investors find the show.

Instagram | Facebook | LinkedIn | X

________ 

Disclaimer: Past performance does not guarantee future results. Every investor should consider whether an investment strategy is right for them and all the risks involved. Stocks, including dividend stocks, are volatile and can lose money. Denewiler Capital Management may or may not have positions in the publicly traded companies mentioned herein.