Dividend-Paying Companies We Invest In - April 2024 Edition
This month’s featured dividend-paying equity hand-picked from our income investment portfolio
Welcome to a new feature addition to our all-in-one substack subscription - how we are targeting dividend-paying equities for income. We will focus on highlighting a dividend paying equity in our Cedar Income Portfolio. Every month, we feature a dividend-paying equity in our income-investing strategy, backed by fundamental and technical analysis.
We comprehensively qualify each featured equity as a sustainable and outperforming option that we assess may provide us reliable dividend-based income.
To our enthusiast readers, come long with us below for a rundown on the basics of income investing and our approach.
To our professional readers who want to skip to the good part, head to the ‘About Today’s Pick’ section and all subsequent content.
Today’s Feature Content:
What is Income Investing and Why is it Important?
How Do We Qualify Our Featured Equities?
Sneak Peak: About Today’s Pick
About the Company
Fundamental & Technical Analysis
What is Income Investing and Why is it Important?
Income investing focuses on generating a steady stream of passive income from investments. This typically involves investing in assets such as bonds, dividend-paying equities, real estate investment trusts (REITs), and other income-generating securities. Our monthly Cedar Income Portfolio series focuses directly on dividend-paying equities that meet certain indicators of financial outperformance as well as long-term health and stability.
Income investing provides diversification of asset classes, with dividend-yields contributing directly to short-term gains, and indirectly to longer-term strategies at the behest of other investment strategies.
We like income-investing as a strategy of the modern age. We often turn our attention to companies outside of the heavily indebted western world, or to companies with debt levels that are generally low or manageable. Dividend-based income generation can provide a hedge against inflation with the potential for increasing dividends over time.
It is important to be aware of the tax implications of your investments, as income generated from different assets may be taxed differently. Consult your accountant or tax advisor for information based on your situation.
How do we Identify & Qualify Our Featured Equities?
To identify dividend-paying equities in our portfolio, we employ our investment approach of using the principles of the Austrian School of Economics (ASE) - link here for a video - toward investing. The ASE is a school of thought initially developed from a select group of economists in Vienna Austria back in the 1870s. The ASE emphasizes savings and investment, with minimal debt and leverage, and maintains that policy changes which allow markets to operate freely result in economic growth and wealth creation, whereas interventionist policies are not friendly to the markets and result in economic stagnation and destruction of wealth. Profit opportunities exist when these changes are anticipated and interpreted properly, and when identifying cash-flowing businesses characterized by elements of innovation, longevity and growth in value.
Our active management approach assesses public-exchange traded equities towards meeting 7 quantitative smart-beta factors and 7 qualitative smart-beta factors:
Several studies indicate that these identified factors are correlated with positive equity market outperformance. Our qualification process strives to identify equities that meet or optimize these 14 smart-beta factors, resulting in relatively high probability of portfolio success, given the positive outperformance correlation to each factor based on industry studies. And for the income portfolio, we emphasize relatively high dividend-paying equities.
Sneak Peak: About Today’s Pick
Here are just a few of the crowning qualifications that gave us the green-light to feature today’s pick on the first of our monthly series:
This company currently pays about 15% dividend yields.
(from stockcharts.com and investing.com)
In addition to dividend distributions, this company shows a potential for capital appreciation, making them potentially promising for both short and long-term strategies.
This company’s business model is currently based on assets in an underinvested, undervalued jurisdiction.
This company deploys great sustainability programs and initiatives.
This company strives towards international-based environmental certification on their assets.
This company is currently leveraging digitalization technologies for growth and operational efficiencies, supportive of UN SDGs 8, 9 & 16.
This company has over 20 years of proven, stable growth since it started in 1991.
This company is publicly listed on two exchanges for ease of access.
Next up, let’s introduce today’s company pick and explore an up-to-date fundamental and technical analysis on its equity share price. Introducing …