Jayson Lowe shows how to find dividend-paying companies among brands you already buy. He walks through five metrics to evaluate them: net profit margin, earnings per share, historical growth, return on capital, and financial strength. The key is confirming dividends come from real cash, not accounting tricks.
Go to your pantry and I want you to take a picture of everything that's in your pantry. And then I want you to copy that photo, paste that photo into ChatGPT, and then I want you to ask ChatGPT to examine the photo and to tell you what companies in that photo are dividend-paying companies. Now, when you use these companies, it means you're paying them. And so if you're paying these companies every month, what if some of that money came back to you? What happens if you own a piece of a business instead of just buying from it? So let's examine one company's metrics together. What I'm trying to help you do is avoid bad businesses and identify excellent ones. We're gonna look at profitability. So we're gonna look at net profit margin, earnings per share, and we're gonna be looking at growth over time. And is this company actually good at making money? We're gonna look at return on capital. Is the management team effective at turning dollars into more dollars? We're going to examine financial strength. Can this company survive a bad year? Are dividends paid from real cash or are they paid from hope or what I call accounting hope? Counting tricks? I want to know. I go deeper in a free training at learnwithjay.com, or just follow along and I'll keep it simple.
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