Dividends4Life: The Dividend Growth Investor Business Model

I talk a lot about corporate business models. I have also suggested frequently that dividend growth investors should treat their investing as a business. If you combine those two themes, it's fair to ask, what is the business model of the dividend growth investor's own business? "Business model" means simply, how do you make money and sustain your ability to do it? Here is what I believe is the business model of most dividend growth investors:

"Identify, accumulate, and manage a portfolio of stocks that reliably send growing amounts of cash to headquarters." In other words, the dividend growth investor is like a mini-Buffett: You buy stocks of wonderful companies that send increasing flows of cash up to headquarters (you). The dividend growth investor is in fact a holding company. What you hold are pieces of outstanding operating companies. Your book value grows over time, and so do the cash flows.

Source: Seeking Alpha

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