Finding long-term dividend winners isn't just about good current yield -- it's about income growth and bulletproof businesses
With President Donald Trump into his first month in office, it’s time for investors to focus on how to navigate what likely will be a bumpy investing road — certainly this year, but potentially for years to come.
Indeed, possible changes to Wall Street rules and regulations (including Glass-Steagall), re-negotiations of trade agreements (including the long-established NAFTA pact, or outright cancellation of newer agreements like TPP) and an America-focused trade policy will shape the way investors peer into their investment crystal balls.
What always will matter for investors — particularly those planning for retirement — is building a portfolio that includes no-brainer dividend stocks that can stand the ups and downs of the markets.
Picking winners and losers for the next few months will be fraught with uncertainty. My advice? Focus on things like balance sheets, cash flows, dividend hike histories and diversification. That’ll provide you with a solid base for the future.
As a note: These dividend stocks don’t come with screamingly high yields, and instead sit around the 3%-4% area. That’s because what we’re looking for here is good dividend yield, but excellent dividend quality. Plus, in most of these cases, there’s room for dividend growth, which will improve your yield on cost over time.