Paul Hogan, Co-Manager of the FAM Equity-Income Fund, discusses topics such as the importance of dividend growth and mid-cap, dividend-paying companies in an interview with The Wall Street Transcript.
“A growing dividend means the business is growing as well. They grow because they have a competitive edge or a durable competitive advantage. This allows them to either increase prices, take market share from competitors or launch new products. A business that has proven that it can grow is likely to continue on the same path. As it grows, then it becomes a capital-allocation decision whether the company will take its excess cash flow and make acquisitions, buy back shares or pay dividends.”