In recent months, we have written about Dividend Integrity and how it might be as important now as it has ever been. An important point is that not all dividend-payers possess Dividend Integrity, and some actually exhibit what we call Dividend Hubris. These are companies that pay dividends to the detriment of their corporation. Discerning between Dividend Integrity and Dividend Hubris is where the importance of our fundamental, forward-looking, bottom-up research process and experience comes in. We start with the dividend as an initial quality screen, but we then analyze the business model, management strength, and company financials to determine whether or not the company can exhibit integrity over time.
In this episode, we sit down with John Crawford, IV, CFA, Managing Director of Equity Investments, to discuss how investors can avoid being fooled by Dividend Hubris. In addition to being available on our website, we are pleased that our podcasts are available on Spotify, Apple Music, or wherever you get your podcasts.
Please reference our related Perspectives post for more detail:
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