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Canadian Dividend Investors
1
Own Dominant Companies
in Stable Industries
Buy companies with strong histories of profitability
and with a dominant business franchise.
1
Warren Buffett
In Canada there are four economic sectors that, for a variety of reasons, are relatively stable and profitable. These industries and the companies that dominate them are shown in the following table and will be familiar to most Canadians.
These companies provide services that are essential to most Canadians and they operate in industries where there is limited competition. As a result, they have sufficent pricing power to ensure that they are consistenly profitable even under difficult economic circumstances. Finally, while it is not impossible for their customers to move to one of their competitors, it is usually inconvenient and time consuming for them to do so.
1. Quote attributed to Warren Buffett. Source unknown.
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