From Dividend Monk:
This is the second in a series of articles highlighting dividend companies that have large and durable economic advantages, or “moats,” that protect their business operations and allow years or decades of strong profitability.
When looking for long-term investments, one typically wants to find a business that is performing well, not simply because management is on top of their game right now, but rather because the business itself has fundamental and difficult-to-replicate advantages over its competitors. In the last article, examples of unrivaled economies of scale were provided.
Some companies, over the years, have chosen to throw enormous sums of money at particularly effective advertising campaigns. If done correctly, this can allow a company to charge higher prices for its products, or can bring in more customers per restaurant, or provide other benefits along those lines.
This article provides six examples of dividend-paying companies that have powerful, or even iconic, brands that keep customers coming back…