How to Invest in Dividend Stocks
Most situations concerning dividend investing discuss how a portfolio should be constructed, how different types of non-correlated assets should be included and how to re-balance from time to time. I realize that I have never really written anything about how to handle influx of new funds in a dividend portfolio and how to maintain asset allocations accordingly.As an investor in the accumulation stage, I tend to invest a certain amount every month. The amount of money goes first to stocks which have passed the following basic screen:1) The company has raised dividends for over one decade2) The P/E ratio is less than 203) The dividend payout ratio is less than 50%4) The dividend yield is above 2.50%This screen decreases the total universe of investable dividend growth stocks from 300 to a more manageable number.In the next step I analyze the companies which are... Read more