Amazing Grace
Amazing Grace
Overview
Find out about one of the world’s great dividend growth investors…
Every now and then, someone encapsulates the essence of your work with such disarming simplicity that it feels like a revelation, distilled into just a few poignant paragraphs. That moment came this month as I reviewed the company statement of a holding, we’ve maintained for over a decade: Abbott Laboratories.
“As we celebrate 101 years of dividend payouts, we’re reminded of one of the earliest Abbott investing success stories: Grace Groner, who worked as a secretary at Abbott for over 40 years. In 1935, Groner purchased three shares of Abbott stock for $60 each. By consistently reinvesting her dividend payments, she quietly amassed a fortune of $7.2 million. When she passed away in 2010, at the age of 100, her multi-million-dollar estate came to light.
Groner had established a foundation years earlier to fund internships, international study, and service projects for students at her alma mater, Lake Forest College. Her $180 investment in Abbott stock, compounded through stock splits and dividend reinvestments, enabled her to create a legacy that endures. Over the years, the Grace Elizabeth Groner Foundation has empowered countless students to engage in service-learning initiatives, benefiting at least 25 Lake County, national, and international non-profit organisations.”
Grace’s approach to investing is a masterclass in optimism, alignment, and discipline. Above all, it reflects a profound understanding of long-term growth. Her success was built on the following principles:
- Selecting a company operating in a growth industry that consistently boosts its revenues and profits each year through continuous reinvestment and innovation.
- Choosing a company that pays a growing dividend year after year at a rate higher than the market average (dividend growth investing), rather than simply chasing high dividend yields (high yield investing).
- Accepting that valuations will fluctuate—don’t try to time the market.
- Holding investments for the long term.
Dundas Global Investors aligns closely with Grace Groner’s approach, albeit with a few notable differences. Our strategy emphasises diversification through investments in multiple companies, with occasional sales when strategically necessary.
Be like Grace.
Disclaimer
Dundas Global Investors is the trading name of Dundas Partners LLP. Dundas Partners LLP is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, the Securities and Exchange Commission (SEC) in the USA, and the Australian Securities and Investment Commission (ASIC) in Australia. The Authorised Corporate Director for the Heriot Investment Funds is Waystone Management (UK) Limited which is also authorised and regulated by the Financial Conduct Authority.
Dundas Partners LLP provides investment management services to clients in the UK, USA, Australia, and New Zealand. In this communication Dundas Partners LLP may be referred to as DGI, Dundas or Dundas Global Investors.
This document is a financial promotion and intended for professional, eligible counterparty and institutional investors only. The information presented is for the intended recipient(s) and is not to be share or disseminated without our prior approval. This material has not been prepared for retail clients.
Investors are reminded that the price of shares and the income derived from them is not guaranteed and may go down as well as up. Past performance is not a reliable indicator of future results. This document contains information produced by Dundas and sourced from others where stated. The images used are for illustrative purposes only. The views expressed are those of Dundas and are based on current market conditions. They do not constitute investment advice or a recommendation to buy any security which has been highlighted in this material. Although this communication is based on sources of information that Dundas believes to be reliable, no guarantee is given as to its accuracy or completeness.
In relation to FCA handbook ESG 4.3, Dundas does not market these funds as a ‘sustainability product’. Use of any sustainability related terms in describing the characteristics of the strategy, or inclusion of any third-party information which measures sustainability of our portfolios are for information purposes only.
For full information on fund risks and costs and charges, please refer to the Key Investor Information Documents, Annual & Interim Reports, and the Prospectus, which are available on our website (https://www.dundasglobal.com). Recent performance information is also shown on factsheets, available on the website.
Every now and then, someone encapsulates the essence of your work with such disarming simplicity that it feels like a revelation, distilled into just a few poignant paragraphs. That moment came this month as I reviewed the company statement of a holding, we’ve maintained for over a decade: Abbott Laboratories.
“As we celebrate 101 years of dividend payouts, we’re reminded of one of the earliest Abbott investing success stories: Grace Groner, who worked as a secretary at Abbott for over 40 years. In 1935, Groner purchased three shares of Abbott stock for $60 each. By consistently reinvesting her dividend payments, she quietly amassed a fortune of $7.2 million. When she passed away in 2010, at the age of 100, her multi-million-dollar estate came to light.
Groner had established a foundation years earlier to fund internships, international study, and service projects for students at her alma mater, Lake Forest College. Her $180 investment in Abbott stock, compounded through stock splits and dividend reinvestments, enabled her to create a legacy that endures. Over the years, the Grace Elizabeth Groner Foundation has empowered countless students to engage in service-learning initiatives, benefiting at least 25 Lake County, national, and international non-profit organisations.”
Grace’s approach to investing is a masterclass in optimism, alignment, and discipline. Above all, it reflects a profound understanding of long-term growth. Her success was built on the following principles:
- Selecting a company operating in a growth industry that consistently boosts its revenues and profits each year through continuous reinvestment and innovation.
- Choosing a company that pays a growing dividend year after year at a rate higher than the market average (dividend growth investing), rather than simply chasing high dividend yields (high yield investing).
- Accepting that valuations will fluctuate—don’t try to time the market.
- Holding investments for the long term.
Dundas Global Investors aligns closely with Grace Groner’s approach, albeit with a few notable differences. Our strategy emphasises diversification through investments in multiple companies, with occasional sales when strategically necessary.
To learn more about dividend growth investing, please feel free to contact me or visit our website at www.dundasglobal.com.
Be like Grace.