Dividend Investing and Businesses with Moat

We all have read many times in investing literature about investing in companies that have wide moat. We all also know that this term was made famous by Warren Buffett. What is this wide moat? In simple terms, it is some type of competitive advantage in its business. Competitive advantage in business can come from many different types, viz., brand, high switching cost, patents/IP/rights, ease of scalability, low cost producers, etc.

There are many companies that have many years building moats around their businesses. This moat makes it difficult for competitors to encroach upon their market share. Suffice to say, business with moat have sustainable competitive advantage. In general, companies with moats in their business are very good dividend growth providers. However, the opposite may not be true. Following are few examples of companies with moat that are also dividend growers. continue reading rest of the article….

Kimberly-Clark: High Risk Dividend Growth Stock

kc_logo_newKimberly-Clark is a global health and hygiene company with operations in 37 countries. It’s products are sold in more than 150 countries. It has a well-known family care and personal care brands such as Kleenex, Scott, Andrex, Huggies, Pull-Ups, Kotex, Poise, and Depend.

KMB is a dividend aristocrat and member of Mergent’s Broad Dividend Achievers index. I last reviewed KMB in February 2009 (without its 2008 results). At that point in time, it was high risk to dividend stocks. I have made an observation that its dividends would be under pressure. This 2009 dividend growth rate was only 3.4%, which is lower than its historical average of 9.4%. I am reviewing this again for risk to dividends.


Trend Analysis
This section measures the trends for past 10 years of corporation’s revenue and profitability. The parameters should show consistent growth trends. The chart below shows these trends.

continue reading rest of the article….

Dividend Stocks for Hedging against Dollar’s Long Term Fluctuations

In general, ability of the companies to pay dividends depends upon its profitability, cash flows, earnings, prudent money management (think debt!). With the ongoing recession many have started expressing concerns about long term prospects of US economy. Among many issues, one aspect that has been gaining momentum is the strength of dollar and its status as world currency. It is widely discussed (probably rightly so) that the continued infusion of printed dollar will dilute its value. Further the US government’s debt will cause a credibility issue in longer term. All this will reduce the value of the dollar. In one of his recent interviews, even Buffett acknowledged the concern. However, there is not much analysis on how the master investor plans on addressing this issue in BRKs portfolio.

continue reading rest of the article….

Dividend Tree Potpourri – August 30, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

My Article in Blogosphere


These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

Dividend Tree Potpourri – August 22, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

My Article in Blogosphere


These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

Personal Blogs - BlogCatalog Blog Directory ~