I've tried a few different investing strategies mostly with little success. However, over the past couple years I have settled on a strategy that makes sense to me and I believe in. I have been sticking to it and am starting to reap the rewards through capital gains and dividend income.
My main investing strategy is now what is known as dividend growth investing. I have been reading all about the strategy on a few different blogs out there that detail the strategy and why it is a good way to invest. The idea is that you invest in industry leading, solid, blue chip companies with a history of increasing their dividend payments year after year at a rate higher than inflation. Companies that would be considered dividend growth stocks include Coca Cola, McDonalds, Wal-Mart, Aflac, Walgreen's, Johnson & Johnson and many many others.
When I am looking for dividend growth companies to invest in I to a complete analysis of the companies I am considering. The main things I want to see are increasing sales, profits and earnings per share. This is along with the increasing dividend payments to shareholders. I look for companies that have proven that they know what they are doing. These companies are good at making money for their owners.
Currently I try to make a purchase of a new dividend growth stock or more shares in one I already own each month. Unfortunately I haven't been able to do this the past couple months due to some medical bills that have popped up. However, once we get our emergency savings back up to the levels I like to keep them, I will start back with the dividend stock investing. I'm looking forward to when this can occur and hoping it will be within the next couple months.
Tuesday, November 13, 2012
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