Dividends4Life: Dividends With Wide Moats

Dividends With Wide Moats

Posted by D4L | Thursday, December 22, 2011 | | 0 comments »

Here's a litmus test for stocks that I picked up from a Warren Buffett quote. Say you knew that the day after you bought shares of a company, the stock market would close for five years, so no matter what happens, you're stuck. Would you still invest?

While I think this test applies to all stocks, I find it especially useful when seeking out dividends. If you're relying on dividend reinvestment to boost your returns then you want to find companies that will keep paying for years to come -- preferably decades -- so compound interest will have time to work its magic.

Source: Motley Fool

Related Articles:
- Top 10 Articles For 2010
- Dividend Stocks vs. a Safe Distribution Rate
- Best Stocks for 2011
- The 2011 Dividend Aristocrats
- 13 Dividend Stocks With A Good Yield/Growth Mix

Click here to have future posts delivered to you for free!



Post a Comment

Note: Only a member of this blog may post a comment.


Popular Posts Last 30 Days