One of the main characteristics of quality dividend stocks is that they have a strong brand name. Strong brand by itself would not provide the type of consistent long-term returns that dividend growth investors expect. Add in a wide economic moat, or a strong competitive advantage, which ensures strong pricing power and the qualitative screen for selecting stocks is complete.
Another important characteristic for selecting quality dividend stocks is a history of consistently growing distributions. I like it when a company pays a stable dividends, but I really prefer a company that manages to surprise me by repeatedly raising distributions for many years. This is what truly separates the best companies from the mediocre ones. After all, any company can manage to pay a dividend, but only the best ones with the widest economic moats can afford to grow distributions for many years.
Source: InvestorPlace
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The Dividend Aristocrats -- stocks that have increased their dividends each year for at least 25 consecutive years -- are an elite group, es...
-
With the U.S. markets near their all-time high, trade and geopolitical uncertainties have added to investors' concerns of a sell-off. Wh...
-
High dividend yields can often mean traders don't think a dividend is sustainable long term. Maybe a business is struggling to grow; may...
-
We feel that these dividend-paying equities - as long as they are from high-quality, low-risk issuers - can give retirement investors a smar...
-
Given the uncertainties looming in the distance, it doesn’t look like the U.S. Federal Reserve will raise interest rates anytime soon. We co...
-
For today’s article, I wanted a simple list of high-yield dividend stocks for 2020. But not just that — the other criteria is that the stock...
-
These dividend stocks on my list have higher-than-normal dividend yields. That makes them bargains. But they also have low price-to-earnings...
-
It’s really not easy to find value in today’s stock market. With indices at record highs — and seemingly setting records over and over again...
-
Each time I write my Income Investors column, I often have to make the tough choice between two deserving candidates. Invariably, the first ...
-
Investors always look for a safe spot in volatile market conditions. It’s natural. And dividend stocks are a natural refuge – they offer a s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.