Picking the right dividend stocks is subtle though, and requires, ironically, a fixed-income mind-set. That’s because finding stocks that pay consistent cash dividends is very much like picking bonds that will continue to pay their coupon, and such skills are not usually in an equity analyst’s wheelhouse. While equity analysts may judge a company’s willingness to pay, a bond analyst looks at a company’s ability to pay.
When looking for a few good dividend payers, I look for companies that have the predictable revenues and simple business plans. Companies cannot pay out dividends unless they have solid cash flows, and solid cash flows come from strong dependable revenues. If I can understand how the company makes money and the future revenues are easy to model, then I have a sense of the cash flows that would support the dividend payout.
Source: Forbes
Related Articles:
Dividend Stocks With Strong Staying Power
Posted by D4L | Thursday, September 30, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
A select group of monthly dividend stocks pays dividends at a rate of 10% or higher. Those are the ones on this list. Investors should be aw...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.