Dividend Growth

“For the vast majority of stocks, the dividend record and prospects have always been the most important factor controlling investment quality and value.” - Security Analysis; Benjamin Graham, David L. Dodd, Sydney Cottle

Whether in a bear or bull market, investors seeking timely purchases should keep the basic philosophy of Graham and Dodd in mind: amongst the indicators of a company’s potential long term value, there is no greater barometer than dividend growth. Management can cover up losses, can manufacture signs of strength on the balance sheet and in the income statement, and can forecast growth based on any number of developments. But as their strategies unfold, dividend growth speaks volumes about the true state of the organization.

For more on dividend growth as a core element of investment philosophy, please read The Secret Lessons of Dividend Growth.