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Welcome to the comprehensive glossary for DGI investors. The Dividend Growth Investing (DGI) strategy relies on precise fundamental analysis and the ability to read financial statements. It is an investment approach focused on high-quality companies that not only pay regular dividends but also consistently increase the amount distributed to shareholders each year. For the DGI investor, a stock is not merely a chart moving up and down, but a "cash cow" that grows, fattens up,

Financial ratios are mathematical metrics derived by combining data from the three financial statements previously reviewed (balance sheet, income statement, and cash flow statement). These ratios enable "apples-to-apples" comparisons - such as evaluating a large company against a small one or comparing a company to its industry average. Without financial ratios, a figure like "a profit of one billion dollars" is meaningless unless one knows the amount of capital invested to