FEED Validator

Congratulations!

This is a valid RSS feed.

Recommendations

This feed is valid, but interoperability with the widest range of feed readers could be improved by implementing the following recommendations.

• line 67, column 0: content:encoded should not contain iframe tag (10 occurrences) [help]

  										<content:encoded><![CDATA[<p><iframe style="border: none;" title=" ...
  

• line 98, column 0: content:encoded should not contain data-secret attribute (5 occurrences) [help]

  <blockquote class="wp-embedded-content" data-secret="A5MKtUCVpe"><p><a href= ...
  

• line 120, column 0: content:encoded should not contain fetchpriority attribute [help]

  <p><a href="http://dividendstocksrock.com"><img fetchpriority="high" decodin ...
  

• line 120, column 0: content:encoded should not contain decoding attribute (10 occurrences) [help]

  <p><a href="http://dividendstocksrock.com"><img fetchpriority="high" decodin ...
  

• line 120, column 0: content:encoded should not contain sizes attribute (9 occurrences) [help]

  <p><a href="http://dividendstocksrock.com"><img fetchpriority="high" decodin ...
  

• line 152, column 0: content:encoded should not contain script tag (4 occurrences) [help]

  <p><em>Learn to invest with confidence. Download our recession-proof portfol ...
  

• line 165, column 0: content:encoded should not contain loading attribute (8 occurrences) [help]

  <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/ima ...
  

Source: http://thedividendguyblog.com/feed

1. <?xml version="1.0" encoding="UTF-8"?><rss version="2.0"
2. xmlns:content="http://purl.org/rss/1.0/modules/content/"
3. xmlns:wfw="http://wellformedweb.org/CommentAPI/"
4. xmlns:dc="http://purl.org/dc/elements/1.1/"
5. xmlns:atom="http://www.w3.org/2005/Atom"
6. xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
7. xmlns:slash="http://purl.org/rss/1.0/modules/slash/"
8. >
9.  
10. <channel>
11. <title>The Dividend Guy Blog</title>
12. <atom:link href="http://www.thedividendguyblog.com/feed/" rel="self" type="application/rss+xml" />
13. <link>https://www.thedividendguyblog.com/</link>
14. <description>Unconventional Lifestyle and Dividend Growth Strategy</description>
15. <lastBuildDate>Tue, 14 May 2024 15:55:06 +0000</lastBuildDate>
16. <language>en-US</language>
17. <sy:updatePeriod>
18. hourly </sy:updatePeriod>
19. <sy:updateFrequency>
20. 1 </sy:updateFrequency>
21. <generator>https://wordpress.org/?v=6.5.3</generator>
22.  
23. <image>
24. <url>https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2017/12/cropped-small-icon-32x32.png</url>
25. <title>The Dividend Guy Blog</title>
26. <link>https://www.thedividendguyblog.com/</link>
27. <width>32</width>
28. <height>32</height>
29. </image>
30. <item>
31. <title>Best Foundational Stocks [Podcast]</title>
32. <link>https://www.thedividendguyblog.com/best-foundational-stocks/</link>
33. <comments>https://www.thedividendguyblog.com/best-foundational-stocks/#respond</comments>
35. <dc:creator><![CDATA[DivGuy]]></dc:creator>
36. <pubDate>Wed, 15 May 2024 10:32:44 +0000</pubDate>
37. <category><![CDATA[Best Dividend stocks]]></category>
38. <category><![CDATA[Blog]]></category>
39. <category><![CDATA[Podcast]]></category>
40. <category><![CDATA[AAPL stock]]></category>
41. <category><![CDATA[ABBV stock]]></category>
42. <category><![CDATA[ABT stock]]></category>
43. <category><![CDATA[best core stocks]]></category>
44. <category><![CDATA[best foundational stocks]]></category>
45. <category><![CDATA[best fundamental stocks]]></category>
46. <category><![CDATA[best stocks for a starter]]></category>
47. <category><![CDATA[best stocks for long term]]></category>
48. <category><![CDATA[BLK stock]]></category>
49. <category><![CDATA[EQIX stock]]></category>
50. <category><![CDATA[foundation stocks]]></category>
51. <category><![CDATA[foundational stocks]]></category>
52. <category><![CDATA[JNJ stock]]></category>
53. <category><![CDATA[LMT stock]]></category>
54. <category><![CDATA[MA stock]]></category>
55. <category><![CDATA[MSFT stock]]></category>
56. <category><![CDATA[NNN stock]]></category>
57. <category><![CDATA[PLD stock]]></category>
58. <category><![CDATA[safe stocks to buy]]></category>
59. <category><![CDATA[SHW stock]]></category>
60. <category><![CDATA[stocks to hold forever]]></category>
61. <category><![CDATA[V stock]]></category>
62. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11993</guid>
63.  
64. <description><![CDATA[<p>We help investors build the foundation of their portfolios with the best US foundational stocks by sector. If all goes well, you should buy these shares at the beginning of your portfolio and keep them forever. Which ones play this role for you? Let us know! No more doubts, No more paralysis: Take action and [&#8230;]</p>
65. <p>The post <a href="https://www.thedividendguyblog.com/best-foundational-stocks/">Best Foundational Stocks [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
66. ]]></description>
67. <content:encoded><![CDATA[<p><iframe style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/31289972/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/009430/time-start/00:00:00/playlist-height/200/direction/backward/download/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
68. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
69. <p><span style="font-weight: 400;">We help investors build the foundation of their portfolios with the best US foundational stocks by sector. If all goes well, you should buy these shares at the beginning of your portfolio and keep them forever. Which ones play this role for you? Let us know!</span></p>
70. <p style="text-align: center;"><a href="http://thedividendguyblog.com/webinar"><b>No more doubts, No more paralysis: Take action and Retire happy. Save your Spot to the Invest with Conviction Webinar NOW!</b></a></p>
71. <h2 style="text-align: center;"><span style="color: #009400;">You&#8217;ll Learn</span></h2>
72. <ul>
73. <li><span style="font-weight: 400;">Before we start let&#8217;s cover the benefits of investing with a long-term horizon. Don&#8217;t you want to avoid panicking?</span></li>
74. <li><span style="font-weight: 400;">What’s the definition of a foundational stock? Which role should they play in our portfolios? You should have a conviction strong enough in these picks that you&#8217;d put them in a black box and don&#8217;t look at them for at least 10 years.</span></li>
75. <li>In the technology sector, Mike <span style="font-weight: 400;">selected Apple (AAPL) and Microsoft (MSFT) as the best foundational stocks in this sector. There are multiple good tech options on the US market, so why are these two?</span></li>
76. <li><span style="font-weight: 400;">Some investors may think tech businesses are too volatile to be considered foundational stocks. Why should this sector be part of an investor’s core portfolio?</span></li>
77. <li><span style="font-weight: 400;">Johnson &amp; Johnson (JNJ), Abbott Laboratories (ABT), and AbbVie (ABBV) are the foundational players in the healthcare sector. Mike tells us more about them,</span></li>
78. <li><span style="font-weight: 400;">Healthcare companies are often the subject of lawsuits or suffer from patent expiry or become irrelevant with a new drug&#8217;s arrival. How are these picks better protected against those risks?</span></li>
79. <li><span style="font-weight: 400;">For REITs, Mike named Equinix (EQIX), Prologis (PLD), and National Retail Properties (NNN) as the best foundational stocks. Why are they his top choices?</span></li>
80. <li><span style="font-weight: 400;">REITs have had a hard time in recent years. Higher interest rates also impact them negatively. Is it still relevant to hold some, or should investors simply skip them and focus on other sectors?</span></li>
81. <li><span style="font-weight: 400;">Regarding skipping some sectors or industries, Mike chose no companies in the Materials and Telecoms. Why?</span></li>
82. <li><span style="font-weight: 400;">Vero decided to take that as a challenge and went on Dividend Stocks Rock Stock Screener to find some. What does Mike think about Sherwin-Williams (SHW) in the material sector and Comcast (CMCSA) for telcos?</span></li>
83. <li>Mike is not a fan of the energy sector. <span style="font-weight: 400;">When the episode was discussed, he said: “Maybe Exxon Mobil (XOM), but not sure.” Why is it so?</span></li>
84. <li><span style="font-weight: 400;">BlackRock (BLK), Visa, and Mastercard are on top in the financial sector. What makes them perfect for a long-term horizon?</span></li>
85. <li><span style="font-weight: 400;">With a yield under 1% for Visa and MasterCard, wouldn’t investors be better off holding shares of insurance companies like Aflac (AFL), Ameriprise Financial (AMP), or even Bank of America (BAC)?</span></li>
86. <li><span style="font-weight: 400;">There seem to be a lot of possibilities for the industrial sector in the US: Automatic Data Processing (ADP), Honeywell (HON), Northrup Gruman (NOC), Lockheed Martin (LMT), and Waste Management (WM) are Mike&#8217;s choices. What do they have in common or what makes them unique?</span></li>
87. <li><span style="font-weight: 400;">The consumer staples sector provides investors with a lot of internationally known brands. To build a base for a portfolio, Mike would go for Coca-Cola (KO), Pepsi (PEP), Procter &amp; Gamble (PG), Costco (COST), and Walmart (WMT). Some offer more growth than others on this list. What still makes them all good options?</span></li>
88. <li><span style="font-weight: 400;">Moving on to other well-known names for the consumer discretionary sector: Home Depot (HD), Nike (NKE), Genuine Parts (GPC), McDonalds (MCD), and Starbucks (SBUX). Why does Mike like them?</span></li>
89. <li><span style="font-weight: 400;">Considering the current economy, are they recession-resistant enough?</span></li>
90. <li><span style="font-weight: 400;">As a foundation for utilities, American Water Works (AWK), American States Water (AWR), and NextEra Energy (NEE) would do the work.</span></li>
91. <li><span style="font-weight: 400;">While we all need utilities, they’ve been hit hard lately. Also, considering the transition to greener energy, are utilities a real opportunity or is their future a bit foggy?</span></li>
92. </ul>
93. <p style="text-align: center;"><strong><a href="http://thedividendguyblog.com/workbook" target="_blank" rel="noopener">Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free.</a></strong></p>
94. <h2 id="unique-identifier" style="text-align: center;"><span style="color: #009430;">Related Content</span></h2>
95. <p>After recording this episode, Starbucks (SBUX) created a commotion on the markets with poor quaterly results. Mike reviewed it on The Moose on the Loose.</p>
96. <p><iframe title="Spotify Embed: The Fed doesn&amp;apos;t move, Microsoft deal with Brookfield and Starbucks disastrous quarter" style="border-radius: 12px" width="100%" height="152" frameborder="0" allowfullscreen allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture" loading="lazy" src="https://open.spotify.com/embed/episode/6ZSsgys5l1Pp7nOU82iunQ?utm_source=oembed"></iframe></p>
97. <p>Here&#8217;s the episode about Wide-Moat Dividend Stocks.</p>
98. <blockquote class="wp-embedded-content" data-secret="A5MKtUCVpe"><p><a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a></p></blockquote>
99. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;Moaty Dividend Stocks to Buy [Podcast]&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/embed/#?secret=MtbrfbQ6KM#?secret=A5MKtUCVpe" data-secret="A5MKtUCVpe" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
100. <p>Go back to our Subsectors Series with this episode on Military and Banks!</p>
101. <blockquote class="wp-embedded-content" data-secret="A3bTDNGL1F"><p><a href="https://www.thedividendguyblog.com/military-aerospace-banks-subsectors-series/">Insights into Military &#038; Aerospace and Banks &#8211; Subsectors Series [Podcast]</a></p></blockquote>
102. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;Insights into Military &#038; Aerospace and Banks &#8211; Subsectors Series [Podcast]&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/military-aerospace-banks-subsectors-series/embed/#?secret=UUDw6730xD#?secret=A3bTDNGL1F" data-secret="A3bTDNGL1F" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
103. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
104. <hr />
105. <p><strong>The Best Dividends to Your Inbox!</strong></p>
106. <p>Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!</p>
107. <p></p>
108. <hr />
109. <p><strong>Follow Mike, The Dividend Guy, on:</strong></p>
110. <ul>
111. <li><a href="https://twitter.com/TheDividendGuy">Twitter</a></li>
112. <li><a href="https://www.youtube.com/channel/UC8aD-2lWvqnkxKiGH91X1WQ">YouTube</a></li>
113. <li><a href="https://www.facebook.com/TheDividendGuy">Facebook</a></li>
114. </ul>
115. <hr />
116. <p><strong>Have Ideas? </strong></p>
117. <p>If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an <a href="mailto:dividendustries@gmail.com">email</a>.</p>
118. <hr />
119. <p><em>This podcast episode has been provided by <a href="http://dividendstocksrock.com">Dividend Stocks Rock</a>.</em></p>
120. <p><a href="http://dividendstocksrock.com"><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-10548" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png" alt="" width="745" height="93" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png 745w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock-300x37.png 300w" sizes="(max-width: 745px) 100vw, 745px" /></a></p>
121. <p>The post <a href="https://www.thedividendguyblog.com/best-foundational-stocks/">Best Foundational Stocks [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
122. ]]></content:encoded>
124. <wfw:commentRss>https://www.thedividendguyblog.com/best-foundational-stocks/feed/</wfw:commentRss>
125. <slash:comments>0</slash:comments>
128. </item>
129. <item>
130. <title>Economic Moats: Intangible Assets, Cost Advantages, and Scale</title>
131. <link>https://www.thedividendguyblog.com/economic-moats-intangibles-cost-advantages-scale/</link>
132. <comments>https://www.thedividendguyblog.com/economic-moats-intangibles-cost-advantages-scale/#respond</comments>
134. <dc:creator><![CDATA[The Dividend Guy]]></dc:creator>
135. <pubDate>Thu, 09 May 2024 11:00:03 +0000</pubDate>
136. <category><![CDATA[Blog]]></category>
137. <category><![CDATA[Site Introduction]]></category>
138. <category><![CDATA[Stock Analysis]]></category>
139. <category><![CDATA[competitive advantages: brand identity and intangible assets]]></category>
140. <category><![CDATA[competitive advantages: cost advantage]]></category>
141. <category><![CDATA[competitive advantages: efficient scale]]></category>
142. <category><![CDATA[competitive advantages: intellectual property]]></category>
143. <category><![CDATA[economic moats: cost advantage]]></category>
144. <category><![CDATA[economic moats: efficient scale]]></category>
145. <category><![CDATA[economic moats: intangible assets and brand identity]]></category>
146. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11949</guid>
147.  
148. <description><![CDATA[<p>Concluding our series of articles on economic moats, this week we look at the intangible assets, cost advantages, and scale efficiency factors that contribute to companies’ economic moats. Missed last week’s article? No worries, get it here. Learn to invest with confidence. Download our recession-proof portfolio workbook. Intangible assets Intangible assets include intellectual property, brand [&#8230;]</p>
149. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-intangibles-cost-advantages-scale/">Economic Moats: Intangible Assets, Cost Advantages, and Scale</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
150. ]]></description>
151. <content:encoded><![CDATA[<p>Concluding our series of articles on economic moats, this week we look at the intangible assets, cost advantages, and scale efficiency factors that contribute to companies’ economic moats. Missed last week’s article? No worries, get it <a href="https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/" target="_blank" rel="noopener">here</a>.</p>
152. <p><em>Learn to invest with confidence. Download our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
153. <h2 style="text-align: center;"><span style="color: #009430;">Intangible assets</span></h2>
154. <p>Intangible assets include intellectual property, brand equity, customer relationships, and proprietary technology.</p>
155. <h3>Intellectual Property (IP)</h3>
156. <p>Intellectual property is the creation of the mind that has commercial value and that is protected by law. Patents, trademarks, copyrights, and trade secrets are part of it. Coca-Cola, on top of its iconic brand, also enjoys the trade secret of making its famous beverage. Eli Lilly and Novo Nordisk can sell diabetes drugs protected by patents. In other words, no one can make the same drug as long as the patent is valid.</p>
157. <h3><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/coca-cola-logo.png" rel="lightbox[11949]"><img decoding="async" class="alignright wp-image-11951" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/coca-cola-logo.png" alt="Coca-cola logo" width="204" height="153" /></a>Brand equity</h3>
158. <p>Also called brand identity or recognition, brand equity is probably the easiest one to explain, but sometimes the hardest to quantify. Think about iconic brands that are known by everyone, such as Coca-Cola, Nike, Starbucks, Disney, Apple, Kirkland (Costco), McDonald’s, etc. Companies with such brands often enjoy strong pricing power and generate healthy margins.</p>
159. <p>Someone wanting to open a burger joint knows that opening a McDonald’s will bring customers instantly due to the strong brand identity. However, a strong brand doesn’t necessarily equate to high profitability. Disney has run into its fair share of problems of late even though everybody knows about Mickey Mouse and the Avengers.</p>
160. <h3>Customer Relationships</h3>
161. <p>Strong customer relationships translate into high customer satisfaction which should drive repeat business and word-of-mouth growth. It’s not always easy to scale customer relationships across a wide network, but I feel that most Starbucks locations offer a better service than McDonald’s or Tim Hortons (Restaurant Brands).</p>
162. <h3>Proprietary technology</h3>
163. <p>Proprietary technology can include software systems, algorithms, innovative manufacturing processes, or specialized tools held by a company and that are difficult for other to replicate. Texas Instruments analog chip manufacturing process or ASML photolithography systems are good examples.</p>
164. <h3>Before you know it, they’re gone</h3>
165. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Nike-show-red-on-red-back-WB.jpg" rel="lightbox[11949]"><img loading="lazy" decoding="async" class="alignright size-medium wp-image-11953" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Nike-show-red-on-red-back-WB-300x206.jpg" alt="Nike shoe" width="300" height="206" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Nike-show-red-on-red-back-WB-300x206.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Nike-show-red-on-red-back-WB.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>Just as they can be difficult to identify and quantify, intangible assets can also disappear quickly. Before signing a contract with Nike, Michael Jordan wanted to sign with Converse, the shoe leader in basketball at the time. To get the deal, Nike loaded the truck with advantages, benefits, and royalties. It got Jordan on board. Fast forward to today, Converse sells for $2.4B, representing 5% of its parent company… Nike!</p>
166. <h2 style="text-align: center;"><span style="color: #009430;">Cost advantage</span></h2>
167. <p>Companies with a cost advantage are those able to produce their goods or services at a cheaper price than competitors. Costco positions itself as the biggest client of many of its suppliers to gain negotiating power and offer the lowest price to customers.</p>
168. <p>The cost advantage can be used through two different strategies:</p>
169. <ul>
170. <li><strong>Crush competition with low price: </strong>For many, the easiest way to gain market share is to sell at a cheaper price than the competition. Companies that can produce the same good or service at a cheaper cost can undercut competition and lower their prices.</li>
171. <li><strong>Match competitor’s prices but make a lot more profit:</strong> When the business model permits, some companies (see CNQ examples below) sell at the same price as their competitors. In doing so, they generate higher margins due to their lower operating costs. They become money-making machines.</li>
172. </ul>
173. <h3>Cost advantage examples</h3>
174. <p>Walmart is the perfect example of a cost-advantaged business. As a dominant retailer and among the largest grocers in the U.S., WMT built its entire business model around offering “low prices every day”. Walmart is known to squeeze every penny from its suppliers to offer the cheapest price possible to customers and crush most competitors. You don’t go to Walmart for its exceptional customer service, but rather to pay as little as possible for everyday goods.</p>
175. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/CNR-trains-in-prairie.jpg" rel="lightbox[11949]"><img loading="lazy" decoding="async" class="alignright size-medium wp-image-11955" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/CNR-trains-in-prairie-300x200.jpg" alt="CNR train in a prairie" width="300" height="200" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/CNR-trains-in-prairie-300x200.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/CNR-trains-in-prairie.jpg 600w" sizes="(max-width: 300px) 100vw, 300px" /></a>In Canada, think about railroad operators such as Canadian National Railway and Canadian Pacific. Railroads are one of the cheapest, in many cases the cheapest, way to transport goods across land. Since Canada and the U.S. are amongst the largest countries in the world, CNR and CPKC are quite popular. Railroads are less flexible than trucking, but they sure are less expensive.</p>
176. <p>You’ll find many companies in the commodity space (materials and energy) that benefit from a strong cost advantage. One of the most common examples is Canadian Natural Resources. CNQ benefits from long-life low-decline reserves and asset base. The company produces oil and natural gas at extremely low cost. This allows CNQ to ramp up its production when prices are up to boost its margin and slow it down during down cycles yet remain highly profitable. In other words, its cost advantage makes CNQ a cash flow-making machine.</p>
177. <h3>Cost advantage can be deadly</h3>
178. <p>The cost advantage can be deadly for the competition. Amazon founder, Jeff Bezos, once said “Your margin is my opportunity.” While many companies, such as Barnes &amp; Noble, thought they were doing well, and no competitor could kill them. Amazon came around with a different business model fixated on building a strong cost advantage. Barnes &amp; Noble survived, but it’s not a flourishing business anymore.</p>
179. <p><em>Download our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
180. <h2 style="text-align: center;"><span style="color: #009430;">Efficient scale</span></h2>
181. <p>Wouldn’t it be nice if you could find a business to invest in that has little competition? Efficient scale is the advantage companies have when they operate in a market that only supports one or few competitors. Examples include utility companies, airports, telecommunications, railroads, and pipelines. In Canada, we could almost include the Big Six banks too since they exist in an oligopoly.</p>
182. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo.png" rel="lightbox[11949]"><img loading="lazy" decoding="async" class="alignright size-medium wp-image-11954" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-300x61.png" alt="Telus logo" width="300" height="61" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-300x61.png 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-1024x210.png 1024w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-768x157.png 768w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-1536x314.png 1536w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Telus-logo-2048x419.png 2048w" sizes="(max-width: 300px) 100vw, 300px" /></a>When demand is filled by existing companies and the market’s growth is limited, there’s little incentive for new competitors to enter that market. Remember that Verizon once thought of entering the Canadian market but quickly decided otherwise. Rogers, Telus, and BCE handle 90% of the wireless industry in this country.</p>
183. <p>Railroads and pipelines also have the scale advantage: there’s no point in building a new railroad or pipeline right beside an existing one to compete. The cost of construction of another transport route is prohibitive and would cause both the old and new routes to lose money.</p>
184. <p>Efficient scale is somewhat of a rare type of economic moat, and it might not last. Governments tend to dislike such business models due to the lack of competition driving prices up.</p>
185. <h2 style="text-align: center;"><span style="color: #009430;">Wrap up</span></h2>
186. <p>When you analyze stocks, look for their economic moat. Do they have one? If so, what is it built on? High switching costs, the network effect, intangible assets, cost advantages, scale, brand identity, a combination of these? You’ll be better able to assess companies’ potential to sustain their current success and for how long.</p>
187. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-intangibles-cost-advantages-scale/">Economic Moats: Intangible Assets, Cost Advantages, and Scale</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
188. ]]></content:encoded>
190. <wfw:commentRss>https://www.thedividendguyblog.com/economic-moats-intangibles-cost-advantages-scale/feed/</wfw:commentRss>
191. <slash:comments>0</slash:comments>
194. </item>
195. <item>
196. <title>Things We Believe That Aren’t True [Podcast]</title>
197. <link>https://www.thedividendguyblog.com/things-we-believe-that-arent-true/</link>
198. <comments>https://www.thedividendguyblog.com/things-we-believe-that-arent-true/#respond</comments>
200. <dc:creator><![CDATA[DivGuy]]></dc:creator>
201. <pubDate>Wed, 08 May 2024 10:32:06 +0000</pubDate>
202. <category><![CDATA[Blog]]></category>
203. <category><![CDATA[Podcast]]></category>
204. <category><![CDATA[dividend history]]></category>
205. <category><![CDATA[dividend payout ratio]]></category>
206. <category><![CDATA[good dividend payout ratio]]></category>
207. <category><![CDATA[how to use payout ratio]]></category>
208. <category><![CDATA[how to use PE ratio]]></category>
209. <category><![CDATA[myths about volatility]]></category>
210. <category><![CDATA[payout ratio]]></category>
211. <category><![CDATA[payout ratio guideline]]></category>
212. <category><![CDATA[PE ratio]]></category>
213. <category><![CDATA[PE ratio guidelines]]></category>
214. <category><![CDATA[PE ratio valuation]]></category>
215. <category><![CDATA[stock valuation]]></category>
216. <category><![CDATA[volatility misconception]]></category>
217. <category><![CDATA[volatility misunderstanding]]></category>
218. <category><![CDATA[what does dividend history tell us]]></category>
219. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11985</guid>
220.  
221. <description><![CDATA[<p>Strong beliefs in the investment world guide many investors&#8217; portfolios. The problem is that many of them are not true. It&#8217;s time to destroy misconceptions about payout ratios, PE ratios, dividend history, and volatility. Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free. You&#8217;ll Learn What is the dividend payout ratio? [&#8230;]</p>
222. <p>The post <a href="https://www.thedividendguyblog.com/things-we-believe-that-arent-true/">Things We Believe That Aren’t True [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
223. ]]></description>
224. <content:encoded><![CDATA[<p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/31177687/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/009430/time-start/00:00:00/playlist-height/200/direction/backward/download/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
225. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
226. <p><span style="font-weight: 400;">Strong beliefs in the investment world guide many investors&#8217; portfolios. The problem is that many of them are not true. It&#8217;s time to destroy misconceptions about payout ratios, PE ratios, dividend history, and volatility.</span></p>
227. <p style="text-align: center;"><strong><a href="http://thedividendguyblog.com/workbook" target="_blank" rel="noopener">Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free.</a></strong></p>
228. <h2 style="text-align: center;"><span style="color: #009400;">You&#8217;ll Learn</span></h2>
229. <ul>
230. <li><span style="font-weight: 400;">What is the dividend payout ratio? What does it tell us?</span></li>
231. <li><span style="font-weight: 400;">A strong belief is that a Good Payout Ratio is under 80%. Why is this a misconception?</span></li>
232. <li>To illustrate his point, Mike shares <span style="font-weight: 400;">an example of a stock with a payout ratio over 100% that remains a good option.</span></li>
233. <li>On the other hand, does he have <span style="font-weight: 400;">an example of a low payout ratio stock that you would consider unsafe?</span></li>
234. <li><span style="font-weight: 400;">The price-to-earnings ratio, or the PE ratio, indicates a stock valuation. It tells investors how many times they pay for earnings.</span></li>
235. <li><span style="font-weight: 400;">For many investors, the lower the PE ratio, the more attractive it becomes. However, we have to disagree and remind investors that it depends. To get a realistic view of the PE ratio, investors must compare it to comparable businesses in the same industry and consider the stock’s average.</span></li>
236. <li>Vero asks for <span style="font-weight: 400;">an example of a strong company with a high PE ratio and a weak business with a low PE ratio.</span></li>
237. <li><span style="font-weight: 400;">Another misconception is about dividend history. Many people tend to have a biased opinion of a company because it shows a long history of dividend payments or, as we have often heard, “it has been there forever.” However, while this statistic tells how reliable the company was in the past, it doesn’t tell anything about the future.</span></li>
238. <li><span style="font-weight: 400;">The same belief applies to those whose investment thesis relies highly on a Dividend Aristocrat or King title. Some of them have been in trouble lately.</span></li>
239. <li><span style="font-weight: 400;">To end this episode, let’s discuss the hard-to-destroy thought that low-yield, high-growth stocks are more volatile. How can Mike prove it’s wrong?</span></li>
240. <li><span style="font-weight: 400;">With that in mind, we could say that Mike believes investors should not require a minimum yield. Then, why should they enter a maximum yield?</span></li>
241. </ul>
242. <h2 id="unique-identifier" style="text-align: center;"><span style="color: #009430;">Related Content</span></h2>
243. <p>Here&#8217;s the episode about Wide-Moat Dividend Stocks.</p>
244. <blockquote class="wp-embedded-content" data-secret="R4iMk7ThgP"><p><a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a></p></blockquote>
245. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;Moaty Dividend Stocks to Buy [Podcast]&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/embed/#?secret=J40qmFrrBt#?secret=R4iMk7ThgP" data-secret="R4iMk7ThgP" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
246. <p>Here&#8217;s Mike&#8217;s most recent analysis about BCE.</p>
247. <p><iframe loading="lazy" title="YouTube video player" src="https://www.youtube.com/embed/qzICjtuCPxE?si=8uw6Z9JsD72gH9I-" width="560" height="315" frameborder="0" allowfullscreen="allowfullscreen"></iframe></p>
248. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
249. <hr />
250. <p><strong>The Best Dividends to Your Inbox!</strong></p>
251. <p>Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!</p>
252. <p></p>
253. <hr />
254. <p><strong>Follow Mike, The Dividend Guy, on:</strong></p>
255. <ul>
256. <li><a href="https://twitter.com/TheDividendGuy">Twitter</a></li>
257. <li><a href="https://www.youtube.com/channel/UC8aD-2lWvqnkxKiGH91X1WQ">YouTube</a></li>
258. <li><a href="https://www.facebook.com/TheDividendGuy">Facebook</a></li>
259. </ul>
260. <hr />
261. <p><strong>Have Ideas? </strong></p>
262. <p>If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an <a href="mailto:dividendustries@gmail.com">email</a>.</p>
263. <hr />
264. <p><em>This podcast episode has been provided by <a href="http://dividendstocksrock.com">Dividend Stocks Rock</a>.</em></p>
265. <p><a href="http://dividendstocksrock.com"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-10548" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png" alt="" width="745" height="93" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png 745w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock-300x37.png 300w" sizes="(max-width: 745px) 100vw, 745px" /></a></p>
266. <p>&nbsp;</p>
267. <p>The post <a href="https://www.thedividendguyblog.com/things-we-believe-that-arent-true/">Things We Believe That Aren’t True [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
268. ]]></content:encoded>
270. <wfw:commentRss>https://www.thedividendguyblog.com/things-we-believe-that-arent-true/feed/</wfw:commentRss>
271. <slash:comments>0</slash:comments>
274. </item>
275. <item>
276. <title>Economic Moats: Switching Costs and the Network Effect</title>
277. <link>https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/</link>
278. <comments>https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/#respond</comments>
280. <dc:creator><![CDATA[The Dividend Guy]]></dc:creator>
281. <pubDate>Thu, 02 May 2024 11:00:50 +0000</pubDate>
282. <category><![CDATA[Blog]]></category>
283. <category><![CDATA[Stock Analysis]]></category>
284. <category><![CDATA[competitive advantages: network effect]]></category>
285. <category><![CDATA[competitive advantages: switching costs]]></category>
286. <category><![CDATA[economic moats: switching costs and network effect]]></category>
287. <category><![CDATA[sticky business models have high switching costs]]></category>
288. <category><![CDATA[switching costs and sticky business models]]></category>
289. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11935</guid>
290.  
291. <description><![CDATA[<p>Following last week’s article describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat. Switching cost High switching costs make it difficult, costly, or both for customers to switch from one [&#8230;]</p>
292. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/">Economic Moats: Switching Costs and the Network Effect</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
293. ]]></description>
294. <content:encoded><![CDATA[<p>Following <a href="https://www.thedividendguyblog.com/?p=11935&amp;preview=true" target="_blank" rel="noopener">last week’s article</a> describing the concept of economic moat, we now look at switching costs and the network effect. Both are competitive advantages that protect a company, in other words, that contribute to that company’s economic moat.</p>
295. <h2 style="text-align: center;"><span style="color: #009430;">Switching cost</span></h2>
296. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499.jpg" rel="lightbox[11935]"><img loading="lazy" decoding="async" class="alignright wp-image-11938 size-medium" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-300x256.jpg" alt="honey-dipped spoon resting on a plate; high switching costs lead to sticky business models" width="300" height="256" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-300x256.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499-70x60.jpg 70w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/honey-dipped-spoon-resting-on-a-plate-e1713550995499.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>High switching costs make it difficult, costly, or both for customers to switch from one supplier to another. A company enjoying this type of protection is said to have a sticky business model because the switching costs make its customers stick with it as its supplier.</p>
297. <p>For example, half of my home is connected to an Apple product (air pod, iPhone, MacBook, Apple TV, etc.). It would be difficult to change my smartphone to an Android model. I love the convenience and connectivity of Apple’s product ecosystem. But that creates a product prison that I can’t escape without going through a steep learning curve and lots of costs.</p>
298. <h3>Some industries that enjoy high switching costs</h3>
299. <p>Microsoft&#8217;s product suite, including Windows and Office software, is deeply embedded in both individual and corporate workflows, creating high switching costs. A company moving away from Microsoft products would have to deal with downtime for employees during the migration and software installation, training costs, etc…</p>
300. <p>Many software and service-related companies benefit from high switching costs; Automatic Data Processing is enmeshed in companies’ payroll systems, and Thompson Reuters offers subscription services to legal and accounting departments.</p>
301. <p>Other industries also benefit; automakers who get their custom parts, made to their specifications, from Magna International would incur a lot of set-up costs to switch to another vendor, and the initial adjustment period with the new vendor could affect productivity.</p>
302. <p><em>Learn to invest with confidence. Download our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
303. <h3>Switching cost types</h3>
304. <p>There are three types of switching costs:</p>
305. <ul>
306. <li><strong>Financial switching costs: </strong>Pipelines like Enbridge and TC Energy benefit from long-term contracts that ensure they get paid regardless of the economic environment. Financial switching costs are usually enforced by contracts or fees.</li>
307. <li><strong>Procedural switching costs</strong>: The time, set-up cost, and learning curve I described in the Apple, Microsoft, and Magna examples.</li>
308. <li><strong>Relational switching costs:</strong> Losses due to ending long-term business relationships can be quite high. Think of how much companies using Fastenal’s on-site vending machines or on-site hydrogen connections to Air Products &amp; Chemicals would have to pay to change suppliers. Relational switching costs also include losses in loyalty perks, specialization (Magna), product compatibility (Apple again), and data migration (such as the convenience of Equinix offering co-location services to clients that do business together).</li>
309. </ul>
310. <p>Some industries don’t benefit from high switching costs or a high degree of customer loyalty. This includes industries with many competitors and those whose products are commodities that don’t differ much from one company to another. For example, I have a loyalty card for IGA, a grocery store owned by Empire, but it doesn’t stop me from shopping at my local butcher shop, Metro, or Loblaws.</p>
311. <p>Adding a loyalty program is a good attempt at increasing switching costs, but it’s a small ditch, not a wide moat protecting the castle. As much as I love Alimentation Couche-Tard, it has little to no switching costs.</p>
312. <h2 style="text-align: center;"><span style="color: #009430;">Network effect</span></h2>
313. <p>Have you ever looked at a business and thought “Wow, it’s so easy for this company to make money, everybody uses their product!” This is the network effect.</p>
314. <p><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over.jpg" rel="lightbox[11935]"><img loading="lazy" decoding="async" class="alignright wp-image-11946 size-medium" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over-300x219.jpg" alt="Child falling over a waist-high snowball; the network effect makes growth snowball" width="300" height="219" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over-300x219.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/Snowball-child-falling-over.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>As the company offers more value to customers by improving its product, making it feature-rich or easier to use, by adding complementary products, its customer base grows. As the customer base grows, the company adds more and more value, creating a snowball effect.</p>
315. <h3>Network effect examples</h3>
316. <p>For example, Dividend Stocks Rock members benefit from that network effect; as we get more members, we have financial means to improve the platform. As the platform improves, more investors want to become members, and so on.</p>
317. <p>The best example is probably Visa and Mastercard which have built a duopoly. In the beginning, not all merchants accepted credit cards or not all credit cards. As more people used Visa and Mastercard, more merchants accepted them. Fast forward: V and MA are now processing billions of transactions per year. The best part? They earn a fee for each transaction. Try to create your own credit card company today and get merchants to accept it…</p>
318. <p>Other examples include Google and Facebook. The more people use Google to search the internet, the more data Google gets from those searches enabling it to improve search results—debatable at times—and sell more ads. As search results get better, more people use it. Facebook also benefits from the network effect; who would go there to share their stories or reach out to others if most of their friends and family weren’t on the platform?</p>
319. <p><em>Invest with confidence and enjoy your retirement. See how in our recession-proof portfolio workbook. <script async data-uid="1af9c5dfc6" src="https://m72.ck.page/1af9c5dfc6/index.js" data-jetpack-boost="ignore" data-no-defer="1" nowprocket></script></em></p>
320. <h3>Network effect types</h3>
321. <p>There are three types of network effects:</p>
322. <ul>
323. <li><strong>One-sided network effects</strong>: This relates to a single group of customers. As the customer base increases, the company growth gets stronger; it adds more value to its offerings which brings in more and more new customers. Meta and Google would fall into this category.</li>
324. <li><strong>Two-sided network effects</strong>: This relates to two groups of customers. For example, the more sellers you have on a platform, the more choices you have, and the more buyers come, attracting even more sellers. There’s a close relationship between the number of people looking for a place to rent and the number of people renting on Airbnb. Visa and Mastercard also fall into this category.</li>
325. <li><strong><a href="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB.jpg" rel="lightbox[11935]"><img loading="lazy" decoding="async" class="alignright size-medium wp-image-11941" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB-300x206.jpg" alt="Abstract representation of a network of connected lines" width="300" height="206" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB-300x206.jpg 300w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2024/04/abstract-network-WB.jpg 576w" sizes="(max-width: 300px) 100vw, 300px" /></a>Complementary network effects</strong>: This relates to separate companies mutually benefitting from each other’s growth. For example, the more Apple grows its iPhone sales, the more Broadcom sells RF filters, and the more Qualcomm sells 4G and 5G wireless chips.</li>
326. </ul>
327. <p>Companies in commodity sectors or those offering undifferentiated products, such as basic materials, some traditional manufacturing, and some energy companies, don’t benefit much from network effects. If everybody wants to buy gold, gold miners will just sell more of it, but they don’t benefit from a moat protecting their business. These businesses compete on price and operational efficiency, not on increasing value from additional users or participants.</p>
328. <p>That, in a nutshell, was switching costs and the network effect. Next week, we’ll cover the other competitive advantages that contribute to companies’ economic moat: intangible assets, cost advantages, and scale efficiency.</p>
329. <p>The post <a href="https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/">Economic Moats: Switching Costs and the Network Effect</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
330. ]]></content:encoded>
332. <wfw:commentRss>https://www.thedividendguyblog.com/economic-moats-switching-costs-network-effect/feed/</wfw:commentRss>
333. <slash:comments>0</slash:comments>
336. </item>
337. <item>
338. <title>Moaty Dividend Stocks to Buy [Podcast]</title>
339. <link>https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/</link>
340. <comments>https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/#respond</comments>
342. <dc:creator><![CDATA[DivGuy]]></dc:creator>
343. <pubDate>Wed, 01 May 2024 10:32:26 +0000</pubDate>
344. <category><![CDATA[Blog]]></category>
345. <category><![CDATA[Podcast]]></category>
346. <category><![CDATA[Best Canadian Wide Moat Stocks 2024]]></category>
347. <category><![CDATA[Best Wide Moat Stocks 2024]]></category>
348. <category><![CDATA[Best Wide Moat Stocks To Buy]]></category>
349. <category><![CDATA[How an Economic Moat Provides a Competitive Advantage]]></category>
350. <category><![CDATA[Moat Companies to buy]]></category>
351. <category><![CDATA[Undervalued Wide-Moat Stocks to Buy]]></category>
352. <category><![CDATA[what are economic moats]]></category>
353. <category><![CDATA[what are the 5 economic moats]]></category>
354. <category><![CDATA[wide moat stocks]]></category>
355. <category><![CDATA[wide moat stocks to buy]]></category>
356. <guid isPermaLink="false">https://www.thedividendguyblog.com/?p=11965</guid>
357.  
358. <description><![CDATA[<p>Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we&#8217;ll explain these sources and give examples of stocks to buy for each. Define Your [&#8230;]</p>
359. <p>The post <a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
360. ]]></description>
361. <content:encoded><![CDATA[<p><iframe loading="lazy" style="border: none;" title="Embed Player" src="https://play.libsyn.com/embed/episode/id/31038853/height/128/theme/modern/size/standard/thumbnail/yes/custom-color/009430/time-start/00:00:00/playlist-height/200/direction/backward/download/yes/font-color/FFFFFF" width="100%" height="128" scrolling="no" allowfullscreen="allowfullscreen"></iframe></p>
362. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
363. <p><span style="font-weight: 400;">Initially, a moat is a deep trench around a castle to protect it from invasion and enemies. Nowadays, there are 5 sources of economic moats for companies. They refer to the factors that help a company survive and thrive. Today, we&#8217;ll explain these sources and give examples of stocks to buy for each.</span></p>
364. <p style="text-align: center;"><strong><a href="http://thedividendguyblog.com/workbook" target="_blank" rel="noopener">Define Your Strategy and Invest with Conviction. Download the Portfolio Workbook for free.</a></strong></p>
365. <h2 style="text-align: center;"><span style="color: #009400;">You&#8217;ll Learn</span></h2>
366. <ul>
367. <li><span style="font-weight: 400;">Moat companies are businesses that show solid competitive advantages or some barriers for competitors to enter their niche. There are narrow and wide-moat companies.</span></li>
368. <li>The first source of moat discussed is switching costs. Switching costs can be financial, procedural, or relational. Automatic Data Processing (ADP), Microsoft (MSFT), Apple (AAPL), and Air Products and Chemicals (APD) are good examples.</li>
369. <li>Intangible assets moat regroup intellectual property, brand equity, customer relationships, and proprietary technology. Starbucks (SBUX), Nike (NKE), and McDonalds (MCD) fit well in this category.</li>
370. <li>The network effect relates to companies with products or services that everybody uses. There are one-sided, two-sided, and complementary network effects that make Visa (V) and Mastercard (MA) good candidates.</li>
371. <li>The cost advantage moat allows businesses to crush competition with low prices or benefit from a more significant profit. Costco (COST), Canadian Natural Resources (CNQ), and Canadian National Railway (CNR) represent great opportunities.</li>
372. <li>Efficient scale <span style="font-weight: 400;">benefits companies operating in a market that only supports one or a few competitors. Canadian banks ((RY), (NA.TO), (TD), (BMO), (BNS), (CMI)), Telus (TU), and Canadian National Railway (CNR) could be worth adding to your portfolio.</span></li>
373. <li><span style="font-weight: 400;">How can investors assess the sustainability of these moats?</span></li>
374. <li><span style="font-weight: 400;">To what extent should investors follow moaty companies? Is it a “nice-to-have,” or should each of our holdings show at least one moat?</span></li>
375. </ul>
376. <h2 id="unique-identifier" style="text-align: center;"><span style="color: #009430;">Related Content</span></h2>
377. <p>Get more details about how to use economic moats in your investment thesis.</p>
378. <blockquote class="wp-embedded-content" data-secret="26sIUi8ZJE"><p><a href="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/">Add Economic Moats to Your Stock Analysis</a></p></blockquote>
379. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;Add Economic Moats to Your Stock Analysis&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/economic-moats-in-stock-analysis/embed/#?secret=hLQbrWiJsO#?secret=26sIUi8ZJE" data-secret="26sIUi8ZJE" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
380. <p><span style="font-weight: 400;">Buying at an all-time high is frightening for many investors, as a mistake can become costly! Considering the current market&#8217;s high prices, should you wait or buy? How do you determine which stocks are worth a spot in your portfolio? Let&#8217;s discuss valuation, the Dividend Discount Model (DDM), yield history, PE ratio trend, value score, payout ratios, and more.</span></p>
381. <blockquote class="wp-embedded-content" data-secret="Nyaj4uIcnQ"><p><a href="https://www.thedividendguyblog.com/all-time-high-should-i-buy/">All-Time High, Should I Buy? [Podcast]</a></p></blockquote>
382. <p><iframe class="wp-embedded-content" sandbox="allow-scripts" security="restricted" title="&#8220;All-Time High, Should I Buy? [Podcast]&#8221; &#8212; The Dividend Guy Blog" src="https://www.thedividendguyblog.com/all-time-high-should-i-buy/embed/#?secret=tTia2RLQkp#?secret=Nyaj4uIcnQ" data-secret="Nyaj4uIcnQ" width="600" height="338" frameborder="0" marginwidth="0" marginheight="0" scrolling="no"></iframe></p>
383. <p style="text-align: center;"><p style="text-align: center;"><a class="button" href="https://www.thedividendguyblog.com/subscribe-to-the-dividend-guy-blog-podcast/">Subscribe</a></p></p>
384. <hr />
385. <p><strong>The Best Dividends to Your Inbox!</strong></p>
386. <p>Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!</p>
387. <p></p>
388. <hr />
389. <p><strong>Follow Mike, The Dividend Guy, on:</strong></p>
390. <ul>
391. <li><a href="https://twitter.com/TheDividendGuy">Twitter</a></li>
392. <li><a href="https://www.youtube.com/channel/UC8aD-2lWvqnkxKiGH91X1WQ">YouTube</a></li>
393. <li><a href="https://www.facebook.com/TheDividendGuy">Facebook</a></li>
394. </ul>
395. <hr />
396. <p><strong>Have Ideas? </strong></p>
397. <p>If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an <a href="mailto:dividendustries@gmail.com">email</a>.</p>
398. <hr />
399. <p><em>This podcast episode has been provided by <a href="http://dividendstocksrock.com">Dividend Stocks Rock</a>.</em></p>
400. <p><a href="http://dividendstocksrock.com"><img loading="lazy" decoding="async" class="alignnone size-full wp-image-10548" src="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png" alt="" width="745" height="93" srcset="https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock.png 745w, https://www.thedividendguyblog.com/wp-content/themes/leia-en/imagenes/2022/03/Logo_DividendStocksRock-300x37.png 300w" sizes="(max-width: 745px) 100vw, 745px" /></a></p>
401. <p>&nbsp;</p>
402. <p>The post <a href="https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/">Moaty Dividend Stocks to Buy [Podcast]</a> appeared first on <a href="https://www.thedividendguyblog.com">The Dividend Guy Blog</a>.</p>
403. ]]></content:encoded>
405. <wfw:commentRss>https://www.thedividendguyblog.com/moaty-dividend-stocks-to-buy/feed/</wfw:commentRss>
406. <slash:comments>0</slash:comments>
409. </item>
410. </channel>
411. </rss>
412.  

If you would like to create a banner that links to this page (i.e. this validation result), do the following:

1. Download the "valid RSS" banner.

2. Upload the image to your own server. (This step is important. Please do not link directly to the image on this server.)

3. Add this HTML to your page (change the image src attribute if necessary):

   <a href="http://www.feedvalidator.org/check.cgi?url=http%3A//thedividendguyblog.com/feed"><img src="valid-rss-rogers.png" alt="[Valid RSS]" title="Validate my RSS feed" /></a>

If you would like to create a text link instead, here is the URL you can use:

http://www.feedvalidator.org/check.cgi?url=http%3A//thedividendguyblog.com/feed

Home · About · News · Docs · Terms