Things are Better Than They Appear

If you have not already read this month’s letter regarding the incredible growth of dividends over our investment lifetime, please click this link. And if you are not yet subscribed to the email Periscope, please do so so that you can see the link!

Dividends: The Tortoise Breaks into a Trot

Last year’s S&P 500 cash dividend was 10.8% higher than 2021’s $60.40. (It was the 13th year in a row that dividends went up, and the 11th consecutive record high.) –Nick Murray

Dividends grew while the share prices declined, temporarily, in 2022. A key difference is that dividend growth is permanent; there are so few exceptions to this rule that I cannot name one. But the dividend growth is just a fraction of the good news that is not being reported.

Believe it or not, equity prices are up this year. In fact, they were up in the last three months of 2022 also. While the news remains scary, and focused on the scary things that may happen in the future, our companies are quietly doing their jobs. They are making profits, paying their employees, paying their investors dividends too. 

“The future is brighter than you think” and this recent article discusses some reasons why. You may want to settle down and read this article, and others like it, slowly. The further we step back from the news (always scary) to put our situation in perspective (always positive), the better off we are likely to feel. 

Here are some take-aways in case you do not make the time for the article about the future. Worldwide:

• Poverty is decreasing. From 38% in 1990 to 8% today…
• Hunger is diminishing. From 13.2% in 2001 to 8.9% today…
• Literacy is increasing. From 12% in 1800 to 86% today…

Back to investments, often the worst of times are the best of times to be confident. We have spoken with almost all of our investment managers already this year and we are reaffirming our confidence in our core beliefs. One of these beliefs is summarized below:

“You make most of your money in a bear market, you just don’t realize it at the time.” –Shelby Collum Davis

Create another beautiful week!