We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer: This is for informational purposes and is not investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. The seduction of “growth” when you’re already cash-rich There is a recurring corporate temptation that shows up most clearly in consumer giants: once the core franchise throws off reliable cash, management begins to treat that cash as a mandate to do something big . Often that “something” becomes acquisitions—new brands, new geographies, new narratives—frequently justified as “growth,” even when the acquired businesses are structurally low-return or outright loss-making. Jollibee Foods Corporation (JFC) offers a timely cautionary case study. By its own disclosures, JFC delivered strong topline momentum through September 2025 and expanded its global store footprint, wit...
We’ve been blogging for free. If you enjoy our content, consider supporting us! Disclaimer: This is for informational purposes and is not investment advice. Figures are taken from company disclosures and exchange data; valuation ratios include the author’s calculations based on cited inputs. By the numbers, every “dividend machine” has a hidden engine. The question is whether that engine runs on operating cash—or on wishful thinking. Dividend investors love simple stories: strong brands, steady profits, a board that “always pays.” But the market’s most expensive lesson is that dividends don’t come from the income statement. They come from cash—and specifically from cash generated by the core business. That distinction is now the difference between holding a yield stock with confidence and holding one with crossed fingers. Consider RFM and Monde Nissin—two consumer names that can appear, on the surface, to offer what income investors crave: regular payouts and re...