“I am extremely pleased with the market-beating returns, but I am even more pleased by the level of service you have provided. The end result has been that I am completely comfortable with the nature of my investments and am quick to recommend LWM to friends and colleagues.”
Dividends
One of the criteria we usually apply is that companies in which we invest should pay dividends to their shareholders. We also look for companies that have a long history of paying their dividends without fail, even when they have gone through lean periods. A dramatically undervalued stock that pays an attractive dividend can produce superb results with little risk. The ongoing dividend income improves the consistency of portfolio returns and the reinvestment of these dividends can dramatically boost investment returns.
The second reason is that we are looking at companies with responsible management teams that appreciate their duty to shareholders. Dividends are a way for management to reward shareholders in return for providing capital for the company.
Whilst we will consider investing in a company that does not pay a dividend, in our first three years of operation we have yet to do so.