As investors continue to look for income in a yield-starved market, I see two mistakes being made consistently. One is focusing on just absolute current yield. While it may seem to make sense to maximize your income today, investors should not overlook the need for income to grow in the future. No matter what the official inflation statistics may say at the moment, we all know that the real cost of living goes up steadily over time. Your income needs to grow, so a portion of your income portfolio should consist of stocks expected to offer strong dividend growth.
The second mistake I see is chasing yield regardless of fundamentals. Fortunately we can use Portfolio Grader to assemble dividend-paying growth stocks with excellent fundamentals. Companies with strong earnings growth should be able to increase your payout and see the stock price go up as fundamentals continue to improve.
Source: InvestorPlace
Related Articles:
- 7 Dividend Stocks For A Confident And Secure Future
- 7 High Yielders With A Low Free Cash Flow Payout
- Wealth is a Journey, Dividend Stocks Can Take You There
- 5 Higher-Yielding, Income Growing Tech Stocks
- Warning Signs of an Imminent Dividend Cut
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
Do you need more income? Join the crowd. It seems everyone is scouring the landscape these days for decent income investments to beef up the...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying s...
-
All too often when a cheap stock offers a high dividend yield, it's too good to be true. Perhaps the stock has plunged with good reason,...
-
Stocks can make for amazing investments, offering better long-term returns than bonds, precious metals, and most other commonly available in...
-
If it's dividends you're after, there are plenty of top companies to consider, particularly those on the Dow Jones Industrial Averag...
-
Investors hear about dividend aristocrats all the time. It’s a fantastic thing if a company raises its dividend every year for 25 years runn...
-
Anxiety over the European debt crisis and distrust in the markets drove volatility in global stock markets to dizzying heights in 2011. The ...
-
To alert investors of stocks that have the highest risk of reducing their current dividend in the future, Simply Safe Dividends created a Di...
0 comments
Post a Comment
Post a Comment