Some one tells me SATS is a rather good dividend growth stock.

If we invest in it now, how well will dividend grow?

I am not sure. There are many factors that come into play. But its been managed by roughly the same group of folks. That should count for something.

History may be able to tell us how good of a dividend growth stock SATS is.

Lets take a look.

How dividends grow

Dividends grow when free cash flow grow. A lot of folks look at earnings but end of the day free cash flow pays out the dividends not an accounting number.

The cash flow growth of a businesses largely can take the form of three ways

  • Organic EBITDA growth. Expand market share. Use resources to move to new market. In the case of SATS this will be to bid for food catering and airport services in other …