Sometimes being a dividend investor sucks. As part of my overall investing strategy, I state that 'dividends are half the journey'. This essentially rules out any potential investments that pay a very small, and/or non-growing dividend. There are a few stocks, with stories that I believe in long term that were eliminated from my watchlist because of this fact.
Google (GOOG) - This company is pure internet genius. Their products continue to amaze and delight me. Google should continue to find ways to profit from their innovation and dominance online well into the future. No dividend.
FedEx (FDX) - Globalization, barriers to entry, great brand. Too bad UPS pays a nice rising dividend. Low dividend.
Starbucks (SBUX) - Fabulous brand! Room for growth worldwide as developing country consumers indulge in coffee decadence. Also potential for growth of non-food products. No dividend.
In my opinion these three firms are all good long term investments, but without the power of dividend growth behind them, they're just not worth my investment dollars.
This article was written by the moneygardener. You may email questions or comments to me at [themoneygardener(at)gmail.com].
2 days ago
