06-02-2015, 02:33 PM
I think historical record is much the same as a prospective employee's resume. It may not guarantee that they are a good worker, but it gives you a track record of what to expect.
Any time you see a company with a 10+ or 25+ year record of dividend increases, you know that dividends to shareholders is a top priority of management. You need to look at the whole picture of fundamentals to determine if this is likely to continue into the future, but first you need to identify those that have done it in the past.
Personally, I like to find companies that have a long track record of consistent earnings growth that have a sustainable model for continued growth in the future. Consumer staples, utilities, REITs, energy, telecommunications, industrials and to some extent technology and consumer discretionary generally have easy to understand businesses that you can reasonably expect growth from into the future.
Any time you see a company with a 10+ or 25+ year record of dividend increases, you know that dividends to shareholders is a top priority of management. You need to look at the whole picture of fundamentals to determine if this is likely to continue into the future, but first you need to identify those that have done it in the past.
Personally, I like to find companies that have a long track record of consistent earnings growth that have a sustainable model for continued growth in the future. Consumer staples, utilities, REITs, energy, telecommunications, industrials and to some extent technology and consumer discretionary generally have easy to understand businesses that you can reasonably expect growth from into the future.