Timothy McIntosh is the Chief Investment Officer and co-founder of SIPCO. He is an accomplished dividend growth investor. He also runs The Dividend Manager – a site focused on dividend investing.
Timothy's investment style is explained in brief below (excerpt from The Dividend Manager)
“Over the years, stocks of companies that initiate and consistently grow their dividends have outperformed the broader market, and have significantly outperformed stocks that cut or don't pay dividends. This is known as the dividend growth effect. Once a company enters a cycle of increasing dividends, it is highly motivated to maintain the trend. It is constantly under pressure to increase profits and cash flow every year, because if it doesn't, it will be forced to decrease or suspend its dividend, which usually leads to a sharp sell-off in the stock. The best indicator of a company's ability to grow its dividend in the future is typically its track record of growing it in the past. Companies with a history of growing dividends have proved they can not only sustain but also grow dividends, even during down markets.”
High quality dividend growth stocks have historically outperformed the market. The performance of the Dividend Aristocrats Index is an excellent example of this phenomenon. The image below shows this performance:
You can download a full list of all 50 Dividend Aristocrats here.
Timothy is also a published author. You can see the investing books he has written at this page. His newest book is The Snowball Effect.
Timothy's interview is below. My questions are in bold.
You have a varied and impressive background. Please tell my audience a bit about yourself and your background.
I started out as a Cryptographic Analyst in the U.S. Army breaking down Morse code. After my tour in the Army, I went to college in Florida working on degrees in economics and a master's in public health. But I always had a love for the stock market and after working at Blue Cross for a few years I switched careers and became an investment manager. I have been managing money now since 1999.
