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
In terms of Financials, I analyzed:
- Payout Ratio: a statistic indicating the safety of a stock's dividend.
- 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 of 3 NYSE and 2 NASDAQ stocks. 1 of them is a Warren Buffett favorite - and a Dividend King. Another is completely different from similar stocks. A third is trying to win a race. And the other two are quite boring...
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