Dividends are the most real and reliable figure in all of the financial statements. And they are the single most useful number to study to uncover the best stock buys.
But dividend investing is not so powerful that all you have to do is to zero in on firms with high dividend yields. There are many lousy companies with high dividend yields, and there are many outstanding companies with zero dividend yields. You also have to buy stocks that have steady and growing dividends.
There are many other traits you should consider when trying to find the best long-term dividend stocks. The more of these features that you study and consider in your search for the best stocks buys, the better you will do.
The best long-term dividend stocks are stocks that have fortress-like balance sheets. They are firms that are focused in the one or two segments where they have a true expertise. They are efficiently run firms that generate rich profits and cash flows. They produce a high-quality good or service and have a loyal customer base as a result. They have strong and steady sales growth potential. And above all, they are selling at reasonable prices.
These are the firms that will hold up the best in a fierce price war or economic calamity. And these are the firms that will exhibit enviable growth in a healthy economy. In short, they will tend to do well in both good times and bad.
Firms with these traits will be firms that possess generous, growing and healthy dividends. These will be the best long-term dividend stocks.
To see stocks with many of these characteristics, click the link below.