Not All Dividends Are Equal: Dividend Kings, Aristocrats, and Red Flags

Not all dividends are created equal. A high dividend can mean that you're looking at a healthy shareholder friendly business, or it can be a warning sign that the market thinks that this payout's not gonna last, and this company possibly could be headed toward bankruptcy. Today, Andrew and I are gonna break down the two main types of dividends and what they actually mean and how you can use them to avoid getting tricked by the you. You're tuned in you're tuned in to the investing for beginners podcast investing for beginners podcast. The show for the long term investor. We cut through the noise to focus on what works, compounding, discipline, and the conviction to buy wonderful businesses and stick with them. Your path to financial freedom start now. Hey. Welcome back to the investing for beginners podcast. My name is Stephen Morris, and he is Andrew Sather. One of the things I love most about what Andrew and I do, in in the company and and in the stock market is that I learn something new every day all the time. And especially, I've only been doing this for a few years, so I am way behind the curve when it comes to Andrew. And so today, we're gonna be talking about something I literally just learned about, and that are two main types of dividends, which are the dividend kings and the dividend aristocrats. And so, basically, what that means correct me if I'm wrong, Andrew. So it's it's dividend kings first. Right? Or is there no. It's aristocrats before kings. Yeah. Because you're Which which do you think? Well, I'm So when I was researching it yeah. When I was researching it, it's like, okay. So the king is above all the aristocrats. So and I'm in a monarchy. Okay. So the aristocrats are twenty five years Mhmm. Plus. And the kings are fifty years plus. So, basically, what that means is that this company has paid a dividend for twenty five straight plus years consecutively without missing one, in order to be a dividend king. So, I think it was Dick's Sporting Goods we were talking about, Andrew, that had to stop their dividends during the pandemic. I can't remember. We recently, I don't remember what the company was. We were talking about a company. And I don't know if they were a dividend aristocrat or king. But the reason I bring that up is them having to stop their dividend during the pandemic for whatever reason would have removed them from the list. Disney. Disney. Okay. Yeah. Yeah. Yeah. Yep. So that that would have removed Disney from whatever tier they were on because they this has to be a consecutive, year. So, that that's what we're talking about today. And, Andrew, like, it it seems so I don't know. Like, as I was researching and learning about it, it's like, man, this is so corny. But it's actually I mean, it's corny, …