Our investment philosophy centres on a quality dividend-growth strategy. By focusing on high-quality stocks with sustainable and growing dividends, we aim to provide steady income and long-term capital growth. Rather than chasing high-yield stocks, which often underperform, we prioritise proven resilience.
Every company we invest in must deliver sustainable dividends, supported by at least ten consecutive years of strong cash returns on investment. Additional quality screens, including balance-sheet strength, narrow down the criteria further. This disciplined process often leads us beyond traditional income sectors to firms combining steady growth with attractive dividend potential. Here are three examples.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Microsoft (Nasdaq: MSFT) is a household name and a global leader in technology, but what really stands out is the company’s innovation and adaptability. Its Azure cloud platform continues to lead the market with growth of about 30%, driven by a hybrid-cloud model and early investments in AI, including Azure AI and Copilot. AI is now a meaningful contributor to growth, solidifying Microsoft’s position at the forefront of technological advancement.
Beyond Azure, Microsoft’s diversified portfolio spans intelligent cloud, productivity and business processes, and personal computing, providing multiple high-margin growth engines. Under CEO Satya Nadella’s leadership, the company has leveraged its enduring competitive advantages, scale, and network effects to reinvest in innovation while maintaining financial strength. With a dividend policy boasting a 10% compound annual growth rate since 2010, Microsoft combines growth potential with shareholders’ returns, making it a core holding.
Coca-Cola (NYSE: KO), the world’s largest non-alcoholic beverage company, holds an unmatched position, with five of the top six global non-alcoholic carbonated drinks under its umbrella: Coca-Cola, Sprite, Fanta, Diet Coke, and Coke Zero.
Coca-Cola exemplifies a business with a formidable competitive advantage underpinned by its iconic brand and global recognition. The company has consistently found new avenues of growth through strategic initiatives such as portfolio optimisation, reformulated beverages to meet changing consumer preferences, and innovative smaller-sized packaging.
This has been reflected in the past three years, during which Coca-Cola has achieved double-digit organic growth despite high inflation. CEO James Quincey summarised Coca-Cola’s success by stating that “our all-weather strategy is working”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
-
Top financial priorities by age – and why a comfortable retirement may be out of reachThe cost of a comfortable retirement has risen, leaving it out of reach of even many of those who believe they are on track
-
How inheritance tax trick is helping families save ‘six-figure sums’Happy to skip a generation to save thousands on inheritance tax? A deed of variation could be the estate planning tool you need.
-
Are wealthy whisky enthusiasts leaving Britain?Collectables Wealthy whisky enthusiasts are heading to tax-friendly countries such as Dubai, where there is more disposable income to spend on collectable luxuries like rare whisky.
-
'The rise and fall of Kodak is a lesson for the tech giants'Opinion The long decline of Kodak – a once-dominant company – shows why no business is safe from disruption, says Matthew Lynn
-
8 of the best properties for sale with kitchen gardensThe best properties for sale with kitchen gardens – from a 17th-century timber-framed hall house in Norfolk, to an Arts & Crafts house in West Sussex designed by Charles Voysey with a garden by Gertrude Jekyll
-
Why investors can no longer trust traditional statistical indicatorsOpinion The statistical indicators and data investors have relied on for decades are no longer fit for purpose. It's time to move on, says Helen Thomas
-
Investors rediscover the virtue of value investing over growthGrowth investing, betting on rapidly expanding companies, has proved successful since 2008. But now the other main investment style seems to be coming back into fashion.
-
8 of the best properties for sale with shooting estatesThe best properties for sale with shooting estates – from an estate in a designated Dark Sky area in Ayrshire, Scotland, to a hunting estate in Tuscany with a wild boar, mouflon, deer and hare shoot
-
The most likely outcome of the AI boom is a big fallOpinion Like the dotcom boom of the late 1990s, AI is not paying off – despite huge investments being made in the hope of creating AI-based wealth
-
What we can learn from Britain’s "Dashing Dozen" stocksStocks that consistently outperform the market are clearly doing something right. What can we learn from the UK's top performers and which ones are still buys?
