Part 4/10:
Many assume that companies paying dividends lack growth opportunities. However, consistent dividend payments can indicate financial health and operational efficiency. Companies that grow dividends over time often demonstrate robust cash flow and a reliable business model.
Contrary to the assertion that substantial capital retention is synonymous with growth, historical market fluctuations reveal that companies with stable dividend programs can indeed outperform others. Consider high-flying companies that make bold growth claims but ultimately decline in value due to unfulfilled expectations, such as Peloton.