Compounding Dividends

Compounding Dividends

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Compounding Dividends
Compounding Dividends
21% Dividend Growth Every Year For 25 Years
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Investment Cases

21% Dividend Growth Every Year For 25 Years

Announcing Our Next Buy

TJ Terwilliger's avatar
TJ Terwilliger
Feb 22, 2025
∙ Paid
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Compounding Dividends
21% Dividend Growth Every Year For 25 Years
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The Compounding Dividends Portfolio already has 3 great dividend-paying companies.

Today we’ll announce the fourth.

Our Next Stock

Our next stock is a Dividend Growth Stock that’s also High-yielder.

The best part?

The company has raised its dividend for 25 years, with a 5-year CAGR of 23.2%.

Other reasons we love this stock?

  • Solid Balance Sheet - Low debt (30% Debt/Equity) and strong cash flow

  • Owner-operator company, with one leader owning about $2 billion in shares

  • The company is a low-cost producer of a necessary product

  • It’s trading above the 5-year historical dividend yield

  • A conservative Earnings Growth Model says we can expect an 11.3% return

  • The Reverse DDM says the company needs to grow the divided at less than 25% of the 5-year historical rate to give us a 10% return

Let’s dive into the full Investment Case and prepare our transaction for Monday.

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