Dividend Growth Investing
What to look for if you want to invest in dividend growth stocks?
This is a quick checklist that you might find handy:
1. Track record
2. Earnings and cash flows
3. Growth rates and consistency
4. Expected growth rates into the foreseeable future
5. Are dividends growing in the past, and what rate?
6. Has it ever been cut?
7. Is the company making enough money to more than cover the dividends paid?
8. What is the future growth rate of the dividend? (tied to #3)
There! A quick and simple guide to investing in dividend growth stocks. Of course, there is a lot more you need to dig into but at least this is a start!
PS: Do you know, there are companies that have CONSISTENTLY INCREASED their dividends paid out EVERY SINGLE YEAR consecutively for more than 30, some 50 years? That is like getting a regular paycheck INCREASE every single year like clockwork!