There is no question that one of the safest and surest ways to build long-term wealth in the stock market is through dividend reinvestment. This reinvestment allows for a form of interest compounding to take place that builds up the portfolio's value over time. While this makes perfect investing sense, there is more to it than simply buying high-dividend stocks. I learned this the hard way, but my experience helped me to develop an easy three-step method to determine the best dividend-paying stocks for a dividend reinvestment portfolio.
With these points understood, just what makes a dividend stock the best? To answer this question and provide a framework for choosing dividend-paying investments while avoiding questionable high yielders, I developed a universal three-step screening process: 1. Solid Companies with Market-Dominating Products/Services. 2. Consistent History of Dividend Increases. 3. The Buffett Factor - Knowing that Warren Buffett or another proven large investor holds shares of a particular dividend paying stock lend tremendous credence to the investment.
Source: Investopedia
Related Articles:
- 3 Styles Of Successful Dividend Investing
- 8 Higher-Yielding Financial Services Stocks With Rising Dividends
- 5 Quality Dividend Stocks To Take The Emotion Out Of Investing
- 7 Select High-Yield S&P 500 Dividend Stocks
- A Winning Investment Strategy
Dividend Growth Stocks News
- 2 Dividend Stocks to Double Up on Right Now - The Motley Fool - 5/16/2025
- 2 Recession-Proof Dividend Stocks to Buy and Hold in May 2025 - NAI500 - 5/16/2025
- Dividend stocks: LTIMindtree, Page Ind, 7 others to go ex-date next week - Business Standard - 5/16/2025
- Tata dividend stocks list: 10 companies to pay Rs 184.60; record dates here - MSN - 5/16/2025
- European Dividend Stocks To Consider For Your Portfolio - Yahoo Finance - 5/16/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Steps For Finding The Best Dividend Stocks To Hold Forever
Posted by D4L | Friday, March 28, 2014 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.