How to Identify Dividend Growth Stocks: A Checklist for Sustainable Income
The simple concept of dividend growth stocks is the bedrock of many successful long-term portfolios. It promises the best of both worlds: stock price appreciation typical of a healthy company and a rising stream of cash payments that acts as an inflation hedge. This is the financial engine known as compounding income.
But how do you find these gems? The market is full of tempting, high-yield stocks that are secretly “dividend traps”—companies whose yields look great until their financial distress forces a dividend cut and a stock price collapse. The key to successful dividend investing is to look beyond the current yield and focus on sustainability.
As an investor with a baseline of financial knowledge, you need a…
