Dividend earnings season is officially underway, and in this episode we kick things off by looking at what early results can tell long-term dividend growth investors. With earnings from companies like Johnson & Johnson, Fastenal, and Investor AB landing early in the season, this episode focuses on what actually matters: dividend reliability, cash flow resilience, and how to think clearly when markets feel noisy.

This episode was recorded in 2026. The principles are evergreen, but market conditions, valuations, and individual company circumstances can change over time.

Earnings season is one of the few times each quarter when we get fresh, comparable data across dozens of companies.We talk about why dividend hikes, free cash flow trends, and management commentary matter far more than headline EPS beats. This is also the period where you can quickly spot which companies are quietly compounding and which ones are starting to feel pressure.

The discussion also touches on how European earnings tend to lag the US reporting cycle and why that actually gives patient investors time to think rather than react.

Dividend hikes and early signals from Europe and the US

Before diving into full earnings reports, we look at early dividend announcements coming through. Several companies have already raised dividends, giving useful signals about confidence levels for the year ahead.

We discuss why modest, steady increases are often more reassuring than flashy hikes, and how dividend policy can tell you a lot about management’s priorities. There’s also a reminder that dividend growth consistency matters more than any single year’s increase.

Fastenal: a quiet industrial compounder

Fastenal’s results sparked a deeper discussion around industrial suppliers and so-called “boring” businesses. On the surface, selling fasteners and tools doesn’t sound exciting. But when you look closer at how embedded Fastenal is in customer operations, the picture changes.

We talk about why its on-site vending machines and integrated supply model create real stickiness, how this shows up in cash flow stability, and why industrial production cycles don’t always tell the full story. It’s a good example of why understanding the business model matters more than labels like “cyclical” or “defensive”.

Investor AB and the role of investment companies

Investor AB gives us a chance to talk about listed investment companies and how they fit into a dividend growth portfolio. Rather than picking individual stocks, Investor AB provides exposure to a collection of high-quality Nordic and global businesses, backed by long-term ownership thinking.

We discuss recent performance, dividend growth, balance sheet strength, and why it’s important not to overthink short-term net asset value movements. There’s also a broader conversation about when it makes sense to trust proven capital allocators rather than trying to out-analyse them.

Johnson & Johnson: dividend reliability in practice

Johnson & Johnson once again delivered what many investors expect from it: steady growth, strong cash generation, and another year of dependable dividend progress.

We revisit why J&J is often described as “clockwork” and why that reliability still matters, even when the business mix evolves. The conversation touches on its pharmaceutical pipeline, medical devices, litigation risks, and how all of that feeds into dividend safety over the long run.

It’s also a reminder that boring doesn’t mean low quality, and that consistency has real value when markets feel uncertain.

Taxes, gold, and investor behaviour

Beyond earnings, the episode branches into wider investor topics. We discuss proposed wealth taxes, unrealised gains, and how different European tax regimes affect long-term compounding.

There’s also a thoughtful discussion around gold as a hedge, portfolio construction during periods of geopolitical uncertainty, and whether dividend-paying equities can serve a similar stabilising role over time.

Listener questions and portfolio thinking

The second half of the episode is driven by listener questions. Topics include ETF-based dividend strategies, position sizing, SaaS companies and valuation metrics, and whether investors should feel conflicted about receiving dividends from highly profitable companies.

These questions lead to a broader reflection on capitalism, competition, and why dividend growth investing is ultimately about discipline, patience, and aligning your portfolio with your values and time horizon.

Companies Mentioned in This Episode

Several companies are discussed to illustrate earnings trends, dividend policy, and business models, including Johnson & Johnson, Fastenal, and Investor AB. These examples are used to explain how dividend growth investors can interpret earnings season more effectively.
These are mentioned for context, not as recommendations.

Chapters From the Episode

0:00–3:10 – Dividend earnings season begins
3:10–12:30 – Why earnings matter for dividend growth investors
12:30–24:00 – Early dividend hikes and confidence signals
24:00–36:00 – Fastenal and industrial business models
36:00–47:30 – Investor AB and long-term capital allocation
47:30–56:30 – Johnson & Johnson earnings and dividend reliability
56:30–1:05:00 – Taxes, gold, and portfolio resilience
1:05:00–end – Listener questions and portfolio strategy

Where to Go Next

If you found this episode useful, you may also enjoy revisiting earlier discussions on earnings and dividend reliability. Consider listening to:

EP 144 – Why Dividend Investing Is Still the Best Type of Investing
EP 180 – Early Retirement & Living off Dividends
EP 148 – Realty Income under $60 – a Business Breakdown

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