Dividends4Life: Why this large-cap dividend could be worth a look

The compounding effects of reinvesting dividends over the long-term can be spectacular - but finding stocks to help you do it is a challenge... The present economic uncertainty is likely to put sustained pressure on dividend payouts over many months. So it's more important than ever that your income stocks are as reliable as possible. To help you find them, it's worth considering a few important rules that cover some of the most important features of dividend investing. Armed with these measures, you'll help to protect yourself from dividend traps and find those companies with the best chance of offering a solid, sustainable income stream over the long term.

Let's take a look at Power Of Canada (TSE:POW) as an example of how this works. High (but not excessive) dividend yield. Power Of Canada is a player in the Insurance industry. It has a dividend yield of 6.51%. Another important marker for income investors is a track record of dividend growth - and evidence that the growth will continue. Power Of Canada has increased its dividend payout 5 times over the past 10 years - and the dividend per share is forecast to grow by 8.02% in the coming year. Dividend safety - Power Of Canada has dividend cover of 1.58.

Source: Stockopedia

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