Don’t Chase the Highest Dividend Do Understand the Company You’re Investing In Do Study a Company’s Cash Flow Statement Do Look for Companies with a History of Increasing Their Dividends Don’t Cash in Your Dividends Any more pointers??
I think it doesn't hurt to look at the financial statements as a whole. I like to look at their liquidity ratios as well as their debt to equity ratio. Do they have to be perfect? No, but they do help in narrowing down candidates for investing. Revenue growth is also important to me, as I want some assurance that they will be able to keep increasing dividends. Beta doesn't worry me right now, especially at my age but as time goes on it could. I'll also give their margins a look and compare them to their industry peers.
Totally agree, in looking at big cap average on eqibeat, the average is about 3.3 % and there are many stocks that are 5-7 % range, the sectors that are producing solid returns are Utilities and Telecoms particularly if you are prepared to look at ADR's
If it is a pure dividend play then I would say most important is dividend history looking for at least 5 years of paying with at least one increase per year. Then payout ratio and cash flow is important to continue paying and raising. This would apply to both domestic and international.
Yes, you're right. Don't buy the stocks with the highest dividends. If you are seeking out higher dividend yields by investing in lower-quality companies, you risk not only quarterly dividend payments but also the possibility that the price of the stock will drop.
