Core Viewpoint - Long-term dividend growth is more valuable than high initial dividend yields for investors seeking sustainable returns over a decade or more [2][12] Company Overview - Nelnet is primarily known for its role in student loan financing but has diversified its operations significantly since the enactment of the Affordable Care Act, which restricted private companies from financing undergraduate student loans [4][5] - The company is transitioning away from its student loan portfolio while acquiring residual loans, expecting to generate $1 billion in cash flow from these loans, with $100 million anticipated in the latter half of 2025 and annually from 2026 to 2030 [5] Financial Performance - Nelnet Bank, a new lending operation, generated $14 million in net interest income, while the legacy undergraduate student loan portfolio generated $50 million in net interest income last quarter [6] - The educational software and payments processing division generated $486 million in revenue and $117 million in operating income in 2024, providing substantial cash flow for dividend payments [8] Asset Valuation - Nelnet holds a 22% stake in the private start-up Hudl, which could be worth hundreds of millions if it goes public, adding significant value to Nelnet's market cap of $4.7 billion [9] Dividend Growth Strategy - The company has a history of consistent dividend growth, with a 11% annual increase in dividend per share from 2014 to 2024, and plans to continue this trend alongside share repurchases [12]