How to find top-quality companies with sustainable and growing dividends

Ian Mortimer, portfolio manager of Guinness Global Equity Income Fund, shares three favourites as he explains where he'd put his money

Stock charts on the background of skyscrapers
(Image credit: Getty Images)

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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

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

Sign up

Portfolio manager, Guinness Global Equity Income Fund