Dividend Growth Investor

McGraw-Hill Dividend Analysis: Attractively Valued

I am focusing on dividends because backtesting has shown that stocks that have increased their dividends for more than 25 consecutive years tend to outperform the market:

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The Board of Directors recently authorized a 7.3% increase in the Company's regular quarterly cash dividend. The dividend increased from $0.205 to $0.22 per common share.
This dividend hike represents the 35th consecutive year that McGraw-Hill has increased its dividend. With a low payout at 30% i don't see a high probability of a dividend cut over the next several years.


This means that the company has increased its dividend every year since 1973. As a long term investor I can hold the stock in a diversified portfolio of other dividend growers even if the particular stock price fell further down, as long as the company keeps increasing its dividends(or doesn't cut them). My time frame is about 2-3 decades from now. Thus I am not overly concerned about what the company will do over the next several months and even 4-5 years from now.
I agree that I do look at the past to get some glimpse into the future. But so far this method of stock analysis has worked for me over the past several years. I know that the future might not exactly repeat the past, but I am willing to take that risk for myself.

I disagree that either of you knows what the future will be like for MHP. Either way I appreciate any constructive criticism to my analysis.