Dividend Growth Investing Done Better Part 4

Many dividend growth portfolio portfolios do not focus on what matters the most. With dividend growth investing, company data matters the most. For dividend growth investing, certain specific company reported data are the facts of companies’ results that have historically led to strong support of the existing dividend and likely growth in the future dividends.

So, how do you know what data factors to focus on for the best dividend growth model? A popular website promotes a “triangle” of the trend of 3 factors that seem intuitively logical, but it is not clear if the 3 factors are correlated to dividend sustainability or growth. And I can’t ascertain the significance or view of any triangle, hmmmmm doesn’t sound research-based or reliable for dividend growth.

Mirador has completed numerous single variable tests (SVT) to determine the actual historical company factors that have led to dividend sustainability and growth. From the SVT results, we create multivariable models that combine the most important single variables for dividends. Then, we add other variables that the SVT shows are important for stability, capital security, and appreciation. These variables help to avoid a sort of value-trap whereby a dividend is really good, mainly because the stock has been so awful.

These multivariable models are tested extensively to discover the best weighting for each variable. Then, we monitor the changes in factor importance over time using functions on the Bloomberg Professional Terminal, and we adjust the factor weightings to optimize the security selection results.

This fact-based, systematic, statistical, and scientific process eliminates biases and conflicts that often occur in more traditional security selection processes. The results speak for themselves – the Mirador Income and Stability fund has had a distribution of 7% or greater in 4 of the past 5 years; it has been set at 7.5% for 2025. And the results are timeless – this is the goal of future-proofing your income investing portfolio.

If you would like to learn more about factor-based quantitative and technical investing, call me at 403-718-0125 or visit our website at miradorwealth.com