Three Shares to Make You Profit in the Long Term

Three Shares to Make You Profit in the Long Term

Dividend Growth Investing "DGI" is a powerful strategy. The idea is simple and intuitive. Companies that increase their annual profits, especially those who have been doing this for a long time, are making better investments than companies with reduced profits. Moreover, the DGI approach narrows the media of developing companies to those who securely share their earnings with shareholders. In other words, management teams are progressing with an investor focus.

Points to Avoid

• Do not buy anything with a payment rate over 70%. So, don't buy anything that dividends account for over 70% of annual profit.
• Avoid companies that pay unsustainably high dividends. "Do not chase yield". Instead, chase safe growth.
• Avoid companies that don't grow their distributions.

Today, we have compiled for you three companies that comply with the above design and trade with attractive values. If you can offer a good price, I think companies will combine your investment with an average of 15-18% per year.

Emerson Electric Co. (EMR)

First, I will admit that EMR is a bit boring. EMR is an engineering company operating in the industrial, commercial and consumer markets. Don't be fooled by sleepy looking profile. EMR has continuously increased its distribution over an incredible 64 years. And he did this without risking his balance sheet. The payout rate is only 57%.

American Express (AXP)

American Express is often misunderstood as in the banking industry. It is truly a financial and payment services provider. Competitors like Square and Venmo are likely experiencing a serious drop in sales in the coronavirus outbreak crisis. However, AXP has a high-end brand that I expect to be much better. As for dividends, AXP has increased its distribution in each of the past eight years. And the payment is quite safe, with a payment rate of only 22%. Thus, the payment can continue to increase for decades without affecting the balance sheet or starving the capital company for growth.

General Dynamics (GD)

General Dynamics is indispensable for the aerospace industry. There are several important defense contracts that are expected to come for decades, keeping the future safe. Stocks fell in March with coronavirus in the same way as AXP and EMR. And the director, John Stratton, accelerated and got over $ half a million shares. There are many reasons why insiders sell. But the only reason they buy is because they expect to make a profit. After this post, the P / E ratio is significantly reduced at a rate below 12. He was over 20 years old as recently as 2018. Stocks represent a fantastic value. So what about dividends and dividend growth? The company has increased its distribution for 29 consecutive years. Even the 2008 recession has not interrupted payment growth. The payout rate covers only 34% of EPS. The company is able to grow organically while increasing distributions for a long time.