One of the traits of a good dividend paying company it is continuously evolving over time. What keeps such companies successful is their ability to recognize the changes in market place and adapting to the new needs. Last week, I highlighted Sysco’s initiative to adapt to changing market place. Today I am moving over to Proctor and Gamble’s industrial design initiatives that has enabled it to continuously increase its market footprint.
P&G has more than 200 plus brands of which approximately 30 bands rake in about billion dollar revenue every year. P&G sells shampoos, toothpaste, toothbrush, shaving razors, diapers, soaps and detergents, tissue papers, etc. The actual products itself are mature and does not have any path breaking innovation (e.g. Shampoo, what will be the path breaking innovation? at the most tweaks?). The challenge for P&G is not about selling these products to consumers. Instead, it is about how to grow continuously, it is about how to maintain the sustainability of its income, and it is about making consumers to pay same (or more) year after year. continue reading rest of the article….
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Demise of Dollar – Does it Affect Dividend Growth?
A quick and simple answer is, no it does not affect dividend growth if dividend investors understand what it really means.
Corporations pay dividends from the combination of profitability, cash flow, income, prudent money management, etc. With the current state of economy in United States (and other parts of the world) majority of the corporations are facing negative growth. In such a scenario where will dividend growth come from? In these challenging environment dividend investors need to look at the macro economic scenario and understand how it will play out in long haul over a period of next 10 years, 20 years, or 30 years.
We read a lot about demise of US dollar. At a very fundamental level, which country’s currency becomes a global currency will depend upon political maturity and economic stronghold at global level. continue reading rest of the article….