How to Develop a Dividend Investing Strategy
Key Takeaways:
- Dividend investing can provide steady income and long-term growth but requires careful selection to avoid unsustainable payouts and dividend traps.
- Successful strategies focus not just on high yields or past payments but on forward-looking factors like financial health, balance sheet strength, and valuation.
- A disciplined dividend plan should align with your goals and risk tolerance, diversify across quality companies, and avoid chasing yield at the expense of total return.
What is Dividend Investing?
Dividend investing is a strategy that investors use to generate a steady stream of income from their investments. Dividend investing primarily involves buying stocks in companies that pay regular…