Like any other investor, I have made several mistakes along the way, but they have helped me refine what I'm looking for (and avoiding) in a high-yield dividend stock. I'm still refining that process, but there are three key things I look for when picking a dividend stock for my portfolio: 1. Assets or a business model that have a decent level of clarity over the next 5-10 years. That can be assets with long-term revenue contracts or a hard-to-disrupt business. 2. A management team that has proven itself to be good stewards of shareholder money with prudent investments and an eye on keeping its balance sheet from becoming overloaded with debt. 3. A company that isn't promising an overly generous payout or gaudy dividend growth numbers. I'm in no rush, and companies that promise exorbitant yields or growth rates tend to not live up to those promises.
With these basic requirements in mind, I just added two dividend stocks I think will fit this mold well in my retirement account: renewable power asset owner TerraForm Power (NASDAQ:TERP) and industrial real estate investment trust STAG Industrial (NYSE:STAG). Here's why I think these stocks fit my mold for high-yield dividend stocks -- and why you may want to consider them for your own portfolio.
Source: Motley Fool
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