Larger, established, defensive companies are more likely to be found among dividend aristocrats. They are companies that have increased and maintained constant pay-outs for over twenty five years. As one would expect DAs are more expensive, but keep in mind that a stock bought at too high a price is a bad investment, even if it is an aristocrat, yet you can find them in certain ETFs.
Aristocrat strategy is not necessarily the be all and end all, certain companies prefer to reinvest which gives one some insight into boardroom thinking.
In this episode of Portfolio Watch CNBC Africa’s Gugulethu Mfuphi is joined by Andrew Dittberner Chief Investment Officer, Private Client Securities, Old Mutual Wealth and Nic Norman-Smith Chief Investment Officer, Lentus Asset Management for more.