This post was originally shared in my DT Email Newsletter here. That’s what my non-dividend investing friends tell me over the years. It sounds reasonable – growth compounds, so you pour more money back into the business. Whereas dividends don’t. In reality this is not always true. The thing is, not every company can reinvest every dollar it makes. At some point, some businesses only need a fixed amount of capital to grow. Past that point, that extra cash doesn’t go into deepening its economic moat or win more customers. Let’s look at Vicom. This is Singapore’s biggest vehicle inspection business. We know it’s a monopoly that’s well regulated in Singapore. Vehicles need inspection each year and there’s only a fixed number of vehicle quotas on the road set by the Singapore government. Now, there’s really no point building another ten new inspection centres to keep growing. Vicom’s capex needs are fixed and predictable year after year....