We launched the Compounding Dividends Portfolio 2 weeks ago.

Today we are announcing the second stock we’ll buy

Let’s walk our investment journeys together and build a great portfolio!

Portfolio Rules

Good agreements make good friends.

Because we are Partners, I will treat you just the same way I would like to be treated.

Here are the Portfolio Rules:

• You can follow the Portfolio 24/7 with 100% transparency

• REAL money is invested in the Portfolio (skin in the game)

• The portfolio will be based on a (fictional) amount of $1 million

  • For each company and transaction, you’ll see what percentage we’re investing

  • This way, you’ll understand our confidence in every company and transaction

• No front-running

  • Compounding Dividends will never buy a stock before you have the chance to do so (after doing your own research—please read the disclaimer

  • We’ll announce new transactions during the weekend, and they will be executed the next trading day (on Monday)

Our Next Stock

Our next stock is another Dividend Growth Stock, but this one comes with a twist:

It’s already yielding over 4%.

This means it qualifies as a high-yield stock.

• The company has a very established brand – it’s been operating since 1898

• It also has a very strong moat created by size, network effects, and cost advantages

• It generates lots of cash and returns a lot of it to shareholders

• The company looks attractively valued:

  • It’s trading above its historic dividend yield

  • The Earnings Growth Model says we can expect a 14% return per year

  • The Reverse Dividend Model says it needs to grow the dividend at half its 5-year average rate for a 10% return.

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

Read more

We launched the Compounding Dividends Portfolio 2 weeks ago.

Today we are announcing the second stock we’ll buy

Let’s walk our investment journeys together and build a great portfolio!

Portfolio Rules

Good agreements make good friends.

Because we are Partners, I will treat you just the same way I would like to be treated.

Here are the Portfolio Rules:

• You can follow the Portfolio 24/7 with 100% transparency

• REAL money is invested in the Portfolio (skin in the game)

• The portfolio will be based on a (fictional) amount of $1 million

  • For each company and transaction, you’ll see what percentage we’re investing

  • This way, you’ll understand our confidence in every company and transaction

• No front-running

  • Compounding Dividends will never buy a stock before you have the chance to do so (after doing your own research—please read the disclaimer

  • We’ll announce new transactions during the weekend, and they will be executed the next trading day (on Monday)

Our Next Stock

Our next stock is another Dividend Growth Stock, but this one comes with a twist:

It’s already yielding over 4%.

This means it qualifies as a high-yield stock.

• The company has a very established brand – it’s been operating since 1898

• It also has a very strong moat created by size, network effects, and cost advantages

• It generates lots of cash and returns a lot of it to shareholders

• The company looks attractively valued:

  • It’s trading above its historic dividend yield

  • The Earnings Growth Model says we can expect a 14% return per year

  • The Reverse Dividend Model says it needs to grow the dividend at half its 5-year average rate for a 10% return.

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

Read more

 We launched the Compounding Dividends Portfolio 2 weeks ago. Today we’re adding another Dividend Growth Stock. This one yields over 4% and is expected to grow well into the future.