Core Viewpoint - The article argues that high dividend stocks are not solely a result of growth but rather possess inherent traits that make them likely to offer high dividends, emphasizing the importance of business models and competitive advantages [2][3]. Business Model - Companies with light asset and low capital expenditure business models are more likely to become high dividend stocks, as they have lower fixed costs and more available cash for dividends [3]. - High capital expenditure businesses face more pressure to reinvest profits, reducing the likelihood of high dividends [3]. Competitive Advantage - Sustainable high dividends require companies to have a competitive moat, ensuring stable output capabilities [3]. - Examples include Changjiang Electric, which benefits from prime hydropower resources, and banks that leverage regulatory licenses and customer loyalty [4]. Dividend Sustainability - Companies like Fuyao and Yili, despite not being cash cows, maintain high dividends due to their competitive advantages, which allow for stable cash flow over time [4]. - The focus for identifying reliable long-term dividend stocks should be on the presence of both a favorable business model and a competitive moat [4]. Dividend Reinvestment - Dividend reinvestment can enhance income over time, creating a compounding effect similar to interest [5]. - Investors can set future passive income goals, allowing for a balance between current living expenses and future financial security [5].