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Pastimes : Triffin's Market Diary

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To: Triffin who wrote (425)7/26/2012 3:34:24 PM
From: Triffin  Read Replies (1) of 868
 
BC: THE 100 YEAR DIVIDEND GROWTH STOCK

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The 100 year Dividend Growth Stock

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Considering that we live in a finite world,
I've always considered stocks that exhibited very long
dividend growth histories as being candidates for the
"future failures list" .. While on the other hand; I've wondered
what characteristics a company would need to have in order to
make it to the "100 year club" .. What would it take ??

1) Provide a necessary product or service ..
2) Have a compelling recurring sales model ..
3) Have the ability to pass thru increasing costs to the end user/customer
4) Have low ongoing capital requirements and high operating margins ..
5) Operate in a low regulatory environment ..
6) Be resistant to customer switching ..
7) Have shareholder friendly policies in place ..
8) Business must be immune to periods of bad management ..
9) No visible disruptive technologies/developments on the horizon ..


"Buy a business any idiot can run, because sooner or later one will."
Warren Buffet ..

So, with the above requirements in mind, here are a few candidate
industries that might produce a "100 year dividend growth stock" ..

Consumer Non-Durables

CL
HSY
HNZ
KFT
KMB
PG

Medical/Health Care Non-Durables

ABT
BAX
BDX
JNJ

Transaction Processors

CME
MA
V

Beverages

BEAM
BF-A or BF-B
KO
PEP
TAP

Information Technology/Services

IBM
MSFT

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