Good Afternoon,
I wanted to let you know that I added to an existing holding in our U.S. model portfolio earlier today. This company is a dividend achiever with a 15-year track record of annual dividend increases. Over the past decade, it has grown its dividend at an annualized rate of 8.7%, and based on our valuation metrics, the shares are currently trading at a sensible price.
As long-term investors, we look for quality companies that can grow both earnings and dividends over time. The goal is to buy them at a fair price, then allow time and compounding to do the heavy lifting.
The stock is trading about 10% below its historical average P/E and currently yields 1.87%. What makes this company especially attractive is its annual special dividend each January, which matches its regular dividend. This effectively lifts its dividend growth rate to more than 17%, creating a powerful engine for long-term income growth.
