Dividend growth investors have different approaches to stock picking, but I think there are some important factors that every investor looks at. As far as I am concerned, I think a good dividend growth pick has to show some simple characteristics.
The first is a stable and solid business with low volatility in top line and margins. The second factor is a low payout ratio and a commitment to increase dividends, typically shown by at least 5-10 consecutive years of dividend raises.
The third factor is a competitive advantage that should guarantee future stability for the company’s business. It’s obvious that an analysis based on these simple factors must be completed by an accurate analysis of the company’s financial condition and every position should be started only if valuation gives the prospects of decent returns.
On the basis of these initial factors, I am going to list and briefly discuss four dividend growth stocks in consumer-related industries that I think are worthy of consideration. All these companies have a stable business, a healthy balance sheet, some competitive advantages that help their business and trade at good or acceptable valuations.
Dividend Income orientated Blog. Ideas and Thoughts about Stocks, Dividends and Growth Opportunities.
7 Stocks With Really Low P/E Multiples
Finding reasonably valued stocks in a market which is trading near its all-time highs can be quite difficult. Many investments’ valuations have increased simply due to investors chasing in order to not miss the upward swing.This is a dangerous game to play since it involves investments are made based on the actions of others and not the business itself.
However, there are investments that provide reasonable valuations as the markets disregard them. These investments offer lower risk and a higher chance of capital preservation. Most notable about these sticks is their low price-to-earnings (P/E) ratio and that they pay out a dividend. These aspects mean there will income generated no matter the performance of the stock price.
Below is a list of the best dividend stocks with a low P/E ratio and includes investments that are offering a dividend yield of more than 13%. But before getting into the list of stocks, here is an explanation of what to look for when searching for such investments.
However, there are investments that provide reasonable valuations as the markets disregard them. These investments offer lower risk and a higher chance of capital preservation. Most notable about these sticks is their low price-to-earnings (P/E) ratio and that they pay out a dividend. These aspects mean there will income generated no matter the performance of the stock price.
Below is a list of the best dividend stocks with a low P/E ratio and includes investments that are offering a dividend yield of more than 13%. But before getting into the list of stocks, here is an explanation of what to look for when searching for such investments.
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