To stay up-to-date with dividend investing, it’s good to read multiple sources so you have a broad overview to inform your decisions. Listed below are a few recent articles we’ve enjoyed and that help to clarify what to look for when investing in dividend stocks.
Dividend Growth Selection In A Low Yield Environment – From Seeking Alpha
- Stock candidates should have strong, moat-protected business models, solid growth trends and/or recession-resistant qualities
- Companies with low debt balance sheets, preferably with large net cash positions, are in a much better position to grow the dividend
- Growing free cash flows [ Ed – a backtested indicator of higher total return ]
- Strong Dividend Coverage Ratios
- Avoid banking or insurance stocks, not conducive to long-term dividend growth
- Avoid chemical and energy stocks, too dependent on input source costs
Economic Returns by Presidential Party – From Seeking Alpha
- A Democratic win is better for long-term growth prospects
- Growth during Democratic presidents has produced, on average, 13% annualized, versus under Republicans of just over 5% annually
What articles have you read recently that would be great for the dividend investing community?