What is our Investment Strategy?

Our investment strategy is ‘Buy and Monitor’, which involves buying shares in high quality dividend paying companies at bargain prices, i.e. those that are historically undervalued. Undervalued represents a situation in which a company’s dividend yield is historically high in relation to the bottom of a major share price decline.

  • We seek out and research dividend paying companies that have a competitive advantage, a long-term plan, an economic ‘moat’ with a long term track record and with an average annual dividend growth of at least 5%, to only keep the most high quality companies.
  • We check and analyse the financial health of the company, its growth prospects and bankruptcy risk, to give us some peace of mind.
  • We calculate, using our proprietary algorithms, the undervalued and overvalued prices, which enable us to have the courage to buy and the wisdom to sell at the right time.

Dividend Income Investor.com’s focus is on high quality dividend paying companies that have long track records of profitability, at least 10 years of uninterrupted dividends with a consistent pattern of increasing dividends, liquidity, institutional ownership and managerial competence.

Our research shows that many high quality dividend paying shares trade between distinct high-yield (undervalue) and low-yield (overvalue) price areas showing us when to buy, sell or hold these companies according to their historically repetitive patterns of dividend yield.

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