Four Top Areas for Dividend Stocks in 2011

I’m mostly a ground-up, fundamental, long-term investor. This means that I pick individual companies, analyze them quantitatively and qualitatively, and then decide whether or not to invest in them. I care little about short-term problems, and I view most financial media as noise. My focus is on the long-term growth prospects of the business, the quality of the products or services, the strength of the economic moat and of the balance sheet, the shareholder friendliness of the company culture, and the valuation of the stock in comparison to all of this. I also try to look at the bigger picture, and find industries that are likely to be relevant and growing for the foreseeable future, and/or industries that as a whole have low stock valuations compared to company fundamentals. My strategy to utilize these trends is to identify specific companies that have access to these trends and invest in the ones that remain attractive after the previously mentioned fundamental analysis. A long-term investor must feel that his or her company is built to stand the test of time, and therefore it really helps to look for companies operating in a healthy industry.... Read more