The Most Important Factor in Selecting Dividend Growth Stocks

As I wrote in a recent post, with a lack of yield in most stocks today (due to the run up in stock prices), investment newsletters and other services are recommending dividend growth stocks in droves as potential yield is all they can hang their hats on with yield being tough to come by. I hope to expand upon the ideas in that post and further clarify the methods I use to find dividend stocks. Yield and a history of dividend increases are not enough to invest in a stock. If we're placing a value on future dividends, we must be relatively certain that the company's future earnings will grow and be able to support growing dividends down the road. There are a number of factors that contribute to whether future earnings will be sufficient for future dividend increases such as management, growth strategy, product innovation and so forth. What... Read more