Value Investing News

Yield does not come without a price, usually in the form of added risk and/or complexity. Ultimately, dividend growth investors realize that long-term and sustainable high-yield investments are grown over time. This is accomplished by purchasing high-quality dividend investments with a reasonable yield and a long history of growing their dividends, and waiting for the yield on cost to grow.

Geoff answers a listener question about seasonal businesses. He says investors shouldn't penalize a stock for having a seasonal business. Warren Buffett bought See's candy. And See's is an incredibly seasonal business. Finally, Geoff analyzes slipper maker R.G. Barry (DFZ) .

There are winners and there are champions in every walk of life. The difference is subtle, but very real. A champion is driven for success and will not let anything stand in its way. Some dividend stocks can be classified as champions.

Most of the companies which leave the dividend achievers or the dividend aristocrat indexes do so because of three reasons. Firtst, they might stop raising dividends because they needed cash for acquisitions. Another reason is that companies cut distributions because of poor economic conditions or need for cash in acquisition.