Of course dividends are important for returns , but the quality of the underlying portfolio companies plays a vital role in ensuring that the payouts are stable and consistent
investors worried about income , this is a no-brainer . The revenue return rose by 23 % YoY for the latest financial year , more than covering the increased dividends paid to investors .
Quality matters Of course dividends are important for returns , but the quality of the underlying portfolio companies plays a vital role in ensuring that the payouts are stable and consistent . After all , not all dividends are created equal . HINT focuses on well-run companies with attractive dividend yields , strong cashflow generation , and the potential to grow capital via earnings and dividends in the future while continuing to invest in the business . They are often leaders of their respective industries , with established competitive advantages . It is the latter of these characteristics – competitive advantage – that was essential last year as it allows these companies to pass on rising input costs .
Issue 91 - January 2023 / 35 /