Dividend & Income Investing
Own durable cash-payers, reinvest relentlessly — boring by design, powerful by compounding.
The Major SchoolsIntermediate 4 min read· Lesson 3 of 5 in Investing Strategies
The idea
Companies that pay and GROW dividends for decades are self-selected for durable cash generation and capital discipline. Reinvested dividends compound share counts, which compound the next dividends — an accelerating flywheel that has historically supplied a large slice of total equity returns.
What to check
Payout ratio vs earnings AND free cash flow (is it affordable?), growth streak length, balance-sheet load. Chasing the highest yields selects for the sickest payers — dividend GROWTH beats dividend SIZE over long horizons.