We added a new category to our Dividend Champion Wannabes. The Wannabes are those businesses that have paid increasing dividends for a number of years and, given enough time, we are sure will make it to the 25 year Dividend Champion threshold. This new class of Wannabes are from the Aerospace and Defense industry category as identified on Justin Law’s list of Champions, Contenders and Challengers reported on ireitinvestor.com. Justin will be one of the early honorees whenever we launch the MYFR Hall of Fame.
These three Aerospace and Defense DC Wannabes will join the Tech DC Wannabes and Pharma Wannabes we previously identified. Generally the Wannabes have a slightly lower dividend rate but higher annual dividend growth rate than the full fledged Dividend Champions. We identified four other prospects (BWXT, CW, HEI and HII) from Justin’s list. We will keep an eye on those businesses but we are not adding them at this time.
We are adding Aerospace and Defense as a new Wannabe class because with Donald Trump as our new President we believe he will invest in restoring our military’s readiness and press for our European and Asian allies to follow suit. That should result in increased demand from the mostly U.S.-based Aerospace and Defense industries.
As our readers know, the MYFR system keeps score of performance by our ever increasing dividend income. That does not mean we are insensitive to value. We believe that over time earnings and dividends are likely to drive value. Maybe equally important is that our increasing income will discourage any selling whenever there is a major downdraft in market values. That’s what we call avoiding the Gnu Effect.
Comentários