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 are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
If you want to earn more dividend income from the stock market, then you need to start investing in healthcare. Analysts project the number ...
-
Showing resilience during a tough week was a group of stocks that has not been heard from much in the past two years. A group that has been ...
-
I am going to double down on Exxon Mobil (XOM) this week because I believe investors will have to deal with more market volatility going for...
-
High dividend yields are harder to find lately, given the long-running stock market rally. But that scarcity doesn't mean investors have...
-
Dividend investing is all about owning investments that pay you — and pay you well — through thick and thin markets. And whether you are bui...
-
The U.S. boosted tariffs on $200 billion worth of Chinese goods from 10% to 25%. The markets had expected this to be the week that this deal...
-
One little-known tax loophole allows Americans to collect large, growing distribution checks from the government. And investors can begin ea...
-
Every investor needs a security blanket -- that piece of the portfolio that needs no attention and doesn't keep you up at night. Busines...
-
Technology is the alchemy of the stock market. It is where companies turn worthless silicon into incredible new and expensive gizmos and dev...
0 comments
Post a Comment
Post a Comment