Mailbox Money

Dividends

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Today's show is all about DIVIDENDS! We cover:

  • What is a Dividend?
  • Dividends are cash payments. Simple math, not opinions or predictions.
  • Of all investment metrics, dividends alone stand the test of time for 200+ years.

    • ANYbody can open their mailbox to hold in your hand a dividend to know what is real, not potentially a good idea. A dividend is clear evidence of what IS happening inside a business, not what anybody believes should happen.

    • All dividends are NOT the same.
    • We’re only interested in Quality Dividends that are Rising
    • Big dividend yield is often an even bigger red flag.
    • Where is it coming from and how safe is it? Top line, margins, debt, CASH
    • Size of a moat attracts the crowds; its direction is more important.
    • Dividend increases are the single best clue to improvement inside a business and how they believe long-term stakeholders should be treated.

      • Growth or Income?

      These debates miss the answer for the biggest question going forward – how to achieve growth OF income?! A rising dividend has an unparalleled track record.

      If you’re eventually going to live off a nest egg, withdrawals are not income. Dividends are free cash flow, not relying on profits or pulling principle.

      Dividends are NOT reserved for retirees – the earlier you start the bigger YOUR yield will be! Dividends do NOT have to be slow growth. Common misconception.

      $100 in 1973 in S&P non-dividend payers grows to $1k. In dividend growers almost $14k.

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      Mailbox MoneyBy Jackson Wood