Finding the Perfect Dividend Stock

If we were able to design the perfect dividend stock it would be one that is both high-yield and provide a high dividend growth rate. Its share price would appreciate along with its increasing dividend. All of this would be driven by increasing earnings and cash flow. Ok, so much for our Utopian world, the perfect dividend stock just may be a balanced compromise. Consider the following:High Yield/Low Dividend Growth When investors first consider investing for income, High Yield is usually their first focus. It is human nature to want it now and want a lot of it. Unfortunately, high yield stocks often carry higher than average risk – there is usually a reason that the stock's yield is above average. It could be because the company is in a limited growth industry, is in a volatile industry, experienced recent financial problems and its share price has fallen, or... Read more