Building a strong and durable portfolio filled with great dividend paying stocks is not just about knowing what to look for, it is also about knowing what to avoid. During my recent conversation with Jack Leslie -- current dividend and high-yield portfolio manager for Miller/Howard Investments -- he suggested there are three red flags he is constantly looking for:
1. A high payout ratio, 2. Too much debt and 3. Slow growing dividends. As a portfolio manager for over 25 years, Leslie has found that by focusing on these indicators you can improve your odds of generating consistent dividend income and a better total return. Finding great dividend paying stocks isn't easy, but as Charlie Munger famously said, "Invert, always invert: Turn a situation or problem upside down. Look at it backward." By looking at an investment in reverse and focusing on what you need to avoid, you can efficiently narrow your search -- and, hopefully, find the best companies that will help to build your wealth over time.
Source: Motley Fool
Related Articles:
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
- International Securities For A Diversified Income Portfolio
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
3 Red Flags to Avoid for Dividend Stocks
Posted by D4L | Friday, May 08, 2015 | 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.