Introducing The Dividend 30
The Margin of Safety Dividend 30 is designed to find roughly 30 domestic companies that offer both dividend safety and future growth. We also maintain an International Dividend Dozen focus stock list.
Our goal is to find about 30 companies, maybe a few more, that can support their current dividends and provide growth of dividends in the future. Growth is the operative word. Companies must increase revenues and profitability to grow their profits.
Investors often "chase yield." Too many of the "high yield" companies investors have invested in, though, have relied on cheap debt and financial engineering to pay high dividends. That puts those stocks at enormous risk in the next recession.
We believe that about one-third of the companies in the S&P 500 (SPY) in coming years will cut their dividends. The majority of those companies will go through painful rebuilding or reorganization processes. Some will "go to zero" and liquidate.
Many dividend investors claim they will "buy more" if their stocks fall in price. That's great if they hold quality companies. Our Dividend 30 is built on quality and growth catalysts. We started with a meticulous screening process.
The Dividend Stock Universe
The first step to investing is deciding how to build your asset allocation. This step is painfully missed by most investors. Here is our step by step approach to screening for dividend stocks to invest in.
The first step to defining our investment universe is to decide on a... Read more