Dividend paying companies are high quality, well-entrenched companies earning surplus cash flows which can be distributed to shareholders. Regular dividends are a sign of sustainable competitive advantages. Regular dividends also signal good corporate governance since the management is willing to share the profits with all shareholders including minorities.
This portfolio aims to assemble relatively higher dividend yielding companies, but which are compliant with the Scientific Investing Framework.
Typically, the rupee dividend paid out by the portfolio should grow with time as the revenues and earnings of these companies grows.