Sunday, May 29, 2016

The Importance of Revenue Growth In Selecting Winning Investments

The Importance of Revenue Growth in Selecting Winning Investments
The Importance of Revenue Growth in Selecting Winning Investments
Over the last couple weeks I've been writing about how companies grow and why it's so important to see how the growth is coming because not all growth is created equal.  Today I wanted to give an example of the differences that can arise if you just look at the numbers as reported instead of digging into them yourself.  But first a quick recap.

Revenue growth is one of my favorite metrics to look at for a company.  I don't have any numbers to back up my claim, but I think you'll all agree that a growing revenue stream leads to rising profits which leads to my personal favorite, a sustainably increasing dividend.  It's pretty safe to say that you won't find many companies that have a lengthy dividend growth streak that haven't also grown their revenue.  That's why I feel it's so important to monitor the top line and how it's growing.

Companies have 4 ways to organically grow the top line and another way to manufacture that growth.

Check out the rest of the article over at Dividend Growth Investor!

Image provided by Sira Anamwong via FreeDigitalPhotos

1 comment:

  1. Thank you so much for the guest post JC! It gave me a lot to think about!

    Wish you lots of good luck my friend!

    DGI

    ReplyDelete