Most people are chasing big dividend payers right now in
this “3% world” we live in. Meanwhile, a small group of “hidden yield” stocks
are quietly handing smart investors growing income streams PLUS annual returns
of 12%, 17.3%, or more.
Let’s talk about how to find these stocks, and bank 12%
returns or better every single year, by following a simple two-step formula.
See, everyone wants dividend stocks with good current
yields. It’s easy to scan a newspaper or financial website and pick out the
stocks that are paying 3%, 4%, 8% or whatever number you might consider “good.”
Yet that’s NOT the right way to pick dividend stocks.
You have to do more work to figure out if those yields are
actually supported by the company’s cash flows, earnings power, long-term
business prospects, etc. You have to sift through the same company’s history to
determine how long it’s been paying those dividends. How consistently it’s been
paying those dividends. And especially if it’s been regularly increasing its
dividend payments.
The best time to buy a dividend grower is anytime. But we
can tip the odds in our favor even further when we buy at moments like these –
when the share price is due to “catch up” to the dividend.
Which brings me to step 1 of our 12% return formula…
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