Here's a list of the 5 Best Dividend Stocks to Buy Now, and Hold On for Dear Life!
Dividend stocks, when you choose them properly, allow for the generation of stable passive income, for as long as you hold them.
The selection process of a dividend stock includes the dividend the company is currently paying, the rate at which it is increasing its dividend, and the degree to which this dividend is sustainable. More importantly, owning a share of company represents owning part of the company itself. Hence, when picking which dividend stock to buy, one should transcend financial ratios and look into the fundamental strengths and weaknesses of the company first.
The criteria for stocks to make the list were:
Company Performance, Room for Growth, Sustainability
Payout Ratio: a statistic indicating the safety of a stock's dividend. (For REITS, a better statistic to look at is the AFFO Payout Ratio)
PE Ratio: the ratio of a company's share price to the company's earnings per share.
Dividend Growth Rate: The rate at which a company is increasing its dividend yield.
Years of Consecutive Dividend Growth Current Dividend Yield.
The list is made up exclusively of stocks portrayed in previous dividend stock TOP 5s. The goal is to strengthen our position in solid companies, and differentiate across sectors. Today's list is made of a REIT, a Financials, a Technology, a Healthcare and a Telecommunications company.