Core Insights - Zoetis Inc. (NYSE: ZTS) is becoming increasingly affordable over time, attracting interest from investors [1] - The company has shown a consistent preference for dividend growth investing, appealing to those looking for reliable and growing dividends [1] Company Analysis - The investment journey in Zoetis began in late 2021 to early 2022, indicating a long-term interest in the company's performance [1] - The focus on dividend growth aligns with a broader strategy of value investing, suggesting a commitment to sustainable financial returns [1] Investment Position - The analyst holds a beneficial long position in Zoetis shares, indicating confidence in the company's future performance [2]

Core Insights - The article highlights the highest-quality Dividend Champions, which are companies that have consistently increased their annual dividend payouts for at least 25 years [1] Group 1: Dividend Champions - Dividend Champions are defined as companies listed on U.S. exchanges with a track record of higher annual dividend payouts for a minimum of 25 years [1] Group 2: Future Articles - Subsequent articles will focus on Dividend Contenders (companies with 10-24 years of dividend increases) and Dividend Challengers (companies with 5-9 years of dividend increases) [1]

Group 1 - Nike is identified as a potential stock for investment due to its strong balance sheet and growth prospects [1] - The focus is on long-term growth and dividend growth investing, with an emphasis on finding undervalued stocks and high-quality dividend-growing companies [1] - Profitability is considered a safer driver of gains compared to low valuation, highlighting the importance of margins, free cash flow stability, and returns on invested capital [1] Group 2 - The article does not provide any specific stock positions or plans to initiate positions in the mentioned companies [2] - There is no compensation received for the article other than from Seeking Alpha, indicating an independent opinion [2] - The article does not offer investment recommendations or advice, emphasizing that past performance does not guarantee future results [3]

Core Insights - Dividends play a crucial role in investor returns, with 85% of the S&P 500's cumulative total return since 1960 attributed to reinvested dividends and compounding [1] - Companies that grow their dividends significantly outperform non-payers and those with static payouts, delivering 10.2% average annual returns from 1973 to 2023 compared to 4.3% for non-payers [2] - Payout ratios below 75% indicate greater financial flexibility for companies, allowing them to maintain or increase dividends during economic challenges [3] Company Summaries Costco - Costco operates a membership-based warehouse retail model that thrives in a competitive landscape, focusing on exceptional value through bulk purchasing [4] - The company has strong business fundamentals, with membership renewal rates exceeding 90% in the U.S. and Canada, generating reliable revenue from membership fees [5] - Despite a modest 0.51% dividend yield, Costco boasts a 12.6% 10-year dividend growth rate and a conservative 27% payout ratio, allowing for continued dividend growth and investment in expansion [6][7] Visa - Visa operates one of the largest payment processing networks globally, benefiting from powerful network effects that enhance its competitive position [8] - The company's business model generates exceptional margins with minimal capital expenditures, resulting in substantial free cash flow for business investment and shareholder returns [9] - Visa's 17.5% 10-year dividend growth rate and a disciplined 21.7% payout ratio reflect a balance between reinvestment and shareholder rewards, positioning it well for growth as economies transition to digital payments [10][11] American Express - American Express targets affluent consumers and businesses with its integrated payment and lending model, cultivating a loyal customer base through its premium brand image [12] - The company is expanding its merchant acceptance network while leveraging its closed-loop network for enhanced risk management and marketing effectiveness [13] - With a 1.24% dividend yield and a 10.7% 10-year dividend growth rate, American Express has a disciplined 20% payout ratio, providing capacity for future dividend increases as it focuses on younger consumers and small businesses [14][15]

Core Insights - The article discusses the journey to financial independence through disciplined living and strategic investing [2] - It emphasizes the importance of dividend growth investing and identifying undervalued high-quality stocks [2] Group 1: Financial Independence Journey - The individual transitioned from being financially unstable at age 27 to achieving financial freedom by age 33 [2] - The approach involved living below means and making intelligent investment decisions [2] Group 2: Investment Strategies - Focus on dividend growth investing as a primary strategy for generating income [2] - Highlighting the significance of high-yield situations and long-term investment opportunities [2]

Exponent Inc. (NASDAQ: EXPO ) is a little-followed consulting company. That said, it is a market leader and has consistently grown in the past decade. Consulting for safety, litigation, regulation, accidents, and failures is a unique business that grows with time. The dividend yield is low, the dividendI am a self-taught individual investor and I have been investing in stocks for over 25 years. I focus on dividend growth investing with a long-term horizon since I believe in the compounding power of dividend ...

Group 1 - The article emphasizes the long-term growth and dividend growth investing strategy, focusing on identifying undervalued stocks and high-quality companies that provide cash for reinvestment [2] - Profitability is highlighted as a safer driver of gains compared to low valuation, with a strong emphasis on margins, free cash flow stability and growth, and returns on invested capital [2] - The author expresses a commitment to thorough research on high-quality companies, indicating a deep interest in understanding their business models and financial health [2] Group 2 - The article includes a disclosure stating that the author has a beneficial long position in Costco shares, indicating a personal investment interest in the company [3] - It is noted that the article reflects the author's own opinions and is not influenced by compensation from any company mentioned [3] - Seeking Alpha's disclosure clarifies that past performance does not guarantee future results and that the views expressed may not represent the platform as a whole [4]