Daunvest /Strategy
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StrategyRisk: Medium· Time: HighDividend hunterQuality

Dividend Growth

Companies that raise their dividend year after year

15–25 companies with a long history of dividend increases. Focus on stable cash flows, a low payout ratio, and sector diversification. Builds a growing passive income stream over time.

Principles
  • A dividend raised year after year is proof the cash flow is real.
  • Spread across at least 6 sectors — dividends die in clumps during sector crises.
  • A payout ratio under 60% leaves room to keep raising the dividend in bad years.
Rules
  1. 1.At least 5 years of uninterrupted dividend increases.
  2. 2.Dividend yield above 2% at purchase.
  3. 3.No position over 8% of the portfolio.
  4. 4.Max 25% sector exposure in any single sector.