A Moat-Worthy REIT To Consider.
- Most every company on the Dividend Champion list has some sort of “economic moat”.
- REITs offer one of the most compelling ways for investors to generate stable cash flows.
- National Retail Properties is clearly a BMW that can now be purchased for the price of a Buick.
One of the most useful tools for dividend investors is David Fish’s DRiP Investing Resource Center. As many know, this website provides a complete list of very useful information with reference to dividend “champions” that have “paid higher dividends for at least 25 straight years in a row.”
When you survey the list of 110 publicly-traded companies you will see that there are many well-recognized stalwarts such as AT&T (T), Chevron (CVX), Coca-Cola (KO), McDonald’s (MCD), Target (TGT), and Wal-Mart (WMT).
Most every company on the Dividend Champion list has some sort of “economic moat” - structural advantages that protect them from competitors, just as physical moats protect castles from enemies.
Warren Buffett (Fortune 1999) said,
The key to investing is …determining the competitive advantage of any given company and, above all, the durability of that advantage. The products or services that have wide, sustainable moats around them ate the ones that deliver rewards to investors.