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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.