When you focus on value, dividends follow quietly

  • Weekly Giveaway for our active users. N50,000 per Week. Do you want to contribute to this community? We are looking for contribution? What is hot right now? Sign up and get in on the ground floor of the newest, fastest growing Nigerian forum!

Olori Uwem

Well-Known Member
Mar 18, 2024
1,256
73
48
When you focus on value, dividends follow quietly

Hello Investors. This powerful phrase is more than just a catchy line — it captures a deep truth about long-term investing. Let’s unpack it in full:

1. What is Value Investing?

Value investing is a strategy where you buy stocks that appear to be undervalued by the market. These are companies whose intrinsic value (what they’re truly worth) is higher than their current market price. Legendary investors like Warren Buffett and Benjamin Graham championed this method.

Value investing is NOT about hype, trends, or quick flips.

It’s about finding solid businesses
With strong fundamentals
That are temporarily overlooked or underappreciated by the market

2. What Are Dividends?

Dividends are a portion of a company’s profits shared with shareholders. Companies that consistently pay dividends are usually:

✅ Profitable
✅ Financially disciplined
✅ Committed to rewarding their investors

Dividends are not promised — they are earned through owning valuable businesses that choose to share part of their profits with you.

3. How Does Value Connect with Dividends?

The phrase “When you focus on value, dividends follow quietly” means:

If you consistently invest in businesses with real value — strong cash flow, ethical leadership, durable competitive advantage — over time, dividends naturally become part of your reward.

You’re not chasing income; you’re investing in strength. And strong companies don’t just grow — they share.

In essence:

Value is the root
Dividends are the fruit

4. Why Do Dividends Come Quietly?

Because:
• They’re not instant — It may take months or years for dividend payments to begin.

• They require patience — You don’t get rich overnight, but you build steady income over time.

• They’re often overlooked — People chase stock price growth, but miss out on the quiet power of compound dividend income.

5. Practical Tips for Living This Principle

Focus on fundamentals – Earnings, debt levels, growth history, and management integrity

Study dividend history – Has the company paid and grown its dividend steadily?

Think long-term – Dividends are a reward for staying invested in quality over time

Avoid noise – Don’t get distracted by market fads or trending tickers

6. Real-Life Analogy

Think of a fruit tree :
• You don’t keep digging it up every week to see if it’s growing.
• You water it, feed it, protect it — and wait.
• In due time, fruit appears quietly.

The same goes for investing in valuable businesses. They grow. Then they quietly start paying you.

Final Thoughts

Dividends are proof that your money is working — not loudly, but effectively.

When you focus on companies that earn well, grow steadily, and manage wisely, you don’t have to beg for returns. They come — quietly, consistently, and powerfully.