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 ratable 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 shareholders perceive future financial or economic problems. I have set aside a small portion of my portfolio to invest in these types of stocks. Examples of these stocks would include: Getty Realty Corp. (GTY) | Yield: 7.5% | Growth: 0.5% Getty Realty Corp. is a real estate investment trust that specializes in the ownership and leasing of retail motor fuel and convenience store properties and petroleum distribution terminals in the U.S. National Retail Properties, Inc. (NNN) | Yield: 5.8% | Growth: 1.0% National Retail Properties, Inc. is an equity real estate investment trust that invests in high-quality, freestanding retail properties subject to long-term net leases with major retail tenants. Cincinnati Financial Corp. (CINF)  | Yield: 5.6% | Growth: 0.6% Cincinnati Financial Corp. markets primarily property and casualty coverage. It also conducts life insurance and asset management operations. Low Yield/High Dividend Growth After being burned on an over-allocation of high yield stocks, some dividend investors start reading-up on the subject.123... Read more