An SDG is a company that pays a dividend which increases, on average, at the rate of 8%-10% per year for many years.
I have a question. How do you protect your portfolio In the event of a company that fulfills this condition but is an unknown fraud (I am thinking Enron) Would your models have picked up on the problem? I know a lot of people that bought into its amazing and fake numbers.
The reason I am asking is most frauds post excellent fake numbers and my number one priority in investing is to avoid fraud. Thanks
RE: What Is A Superior Dividend Grower (SDG)? | Dividend Growth Investing
You are viewing a single comment's thread from:
What Is A Superior Dividend Grower (SDG)? | Dividend Growth Investing
Thanks for answering! To answer your question: I would imagine that the deep dive required when digging into a company's financials and determining whether or not it is an SDG would also reveal any fraudulent activities. Also keep in mind that SDGs are the largest and most well-known companies in the world. They are regularly recognized brands and they are in a variety of sectors. Even if a company was ever revealed to be fraudulent, the portfolio would have so many diverse holdings that the 1 case of fraudulence wouldn't have a very significant impact. Hope that answers your question! Thanks for asking it!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Diversification is the only free lunch in investing they say : ) I completely agree that any investment requires a deep dive, that's why I only own 3 crypto's, I won't invest until I understand them and I am a slow learner!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Understanding and patience are key! Keep at it my friend!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Interesting question that I wanted to ask as well.
My personal view is to invest in well-regulated markets only, plus to invest in what I know well. Shops that I see on the street, brands that I buy, etc. Feels less dodgy than buying something I virtually know anything at all.
Curious to know what others think.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly right. as I mentioned in my response, the companies that qualify as SDGs are well-known and well-respected - the largest in their respected industries and operating under very strict financial laws regarding information. Even still, our portfolio is very well-diversified over a variety of sectors and 1 outlier event wouldn't have much of an impact.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I agree that using a product is an amazing way to gauge an investment. I just avoid companies that make a good product but burn cash like its going out of fashion (thinking Tesla) By only investing in companies that are paying dividends then you can completely avoid cash burners
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly, companies who pay growing dividends over long-periods of time are those who have great cash flow management and are not going anywhere anytime soon.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit