As a dividend growth investor, I am always on the lookout for companies with good dividend growth. My wife and I have a goal to live off the dividends once we hit retirement. I also want to make sure we pay a fair price for the stocks. My purchasing criteria is fairly straightforward and as follows. For core holdings, we want companies that: 1. Have at least 10 consecutive years of dividend growth 2. Are considered by S&P Capital/Morningstar to be no more than 5% overvalued 3. Are considered by F.A.S.T. Graphs to have a current price to earnings ratio that is no more than 5% overvalued when compared to the five-year average price to earnings ratio 4. Have a dividend yield above 2.0%. Dominate their sector of the economy.
Hasbro (HAS), Nike (NKE) and VF Corp. (VFC) are companies with large market share that offer investors excellent dividend growth. Are you noticing a theme here? I like owning the top companies in a sector of the economy. The "Big Boys" in each industry are able to make more and more money from their products. They can then use those earnings to increase their dividends. Because dividends will fund our retirement, owning companies that are willing and able to increase their payouts are the ones that will power our golden years.
Source: Seeking Alpha
Related Articles:
- Building Yield: 7 Consumer Goods Dividend Stocks
- 9 Higher-Yielding Financial Services Stocks With Rising Dividends
- Dividend Stocks vs. a Safe Distribution Rate
- 12 Under-Valued Dividend Stocks
- Successful Investors Take The Emotion Out
________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There’s nothing more satisfying that getting money for doing nothing. That’s why dividend stocks hold so much appeal for portfolios. Many of...
-
We've broadened our search to the S&P 500, and also found two high-dividend stocks among the dividend yield leaders of that larger i...
-
The truth is, some of the best dividend stocks can be found outside the United States. The world is filled with a variety of strong multinat...
-
I believe in dividend growth investing and consider holding strong companies will help me going through any stock market storm. I believe di...
-
Dividend stocks can be a great source of passive income. Not only do they deliver cash into your brokerage account on a recurring basis, but...
-
Generally speaking, the higher the yield, the higher the risk involved. Since yield is a function of share price, a failing business model w...
-
With bond rates already low and the Fed hinting at rate decreases, dividend stocks are in high demand these days, as alternatives in the fix...
-
What kind of income-generating assets make the most sense? Obviously, those that appear undervalued with respect to the basket/group of stoc...
-
Warren Buffett famously quipped that if you aren't willing to own a stock for 10 years, you shouldn't think about owning it for 10 m...
-
As we have seen plenty of times, a company that can’t cover its payout will have to cut its dividend at some point. And when that happens, t...
0 comments
Post a Comment
Post a Comment