In my previous guest post, I wrote about the reasons why successful investors choose dividend investing as their core strategy. Unfortunately, picking just any dividend stocks is not enough to guarantee that you will make money on the stock market. In order to avoid the dividend traps, it’s important to have a sound investing strategy. Here’s how you can do it in 4 easy steps.
Step #1: Screen The Right Stocks With The Right Metrics
Step #2: Don’t Buy The Same Stocks Twice
Step #3: DRIP IT!
Step #4: Don’t Blindly Follow Your Lover
Dividend investing is for patient investors. It’s only over the long run that you will benefit from the compounding of dividend growth and that you will clearly see the power of dividend investing. It’s important to establish your own set of rules and follow them. Most of the time, a sound investing strategy is boring but it pays in the end!
Source: Free Money Finance
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- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- Who is Ben Grossbaum and Why Should We Listen to Him?
- 9 High-Yielding Mega-Cap Stocks
- Best Stocks for 2013
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