I’m a huge fan of checklists. If you have a routine and do it well, you can replicate it over and over with success. With that being said, I’ve identified 5 tips to find the best dividend growth stocks.
- Use free tools to screen for high-quality dividend growth stocks
There are several free tools out there that can help you find stocks or even spur idea generation for new dividend growth investments. Use a stock screener to set up criteria for your potential investments. We have identified a set of criteria to find undervalued dividend growth stocks. Once you input your criteria that you are comfortable using, you can save your screener to update as time progresses. From your screener, pick 5-7 dividend stocks to evaluate further. Go to the investor relations section of the dividend stock website and subscribe to their updates. Follow their progress throughout the year to get an understanding of their business.
- Find a brokerage with low fees
In order to trade the dividend growth stocks you like, you need to have a platform that allows you to. There are some great brokerages out there that allow for fast trade execution, international trading and more. Keep trading fees as low as possible especially if you are new investor with low amount of funds. These trading fees can erode your investment returns and make it an uphill battle for investing.
- Do your homework
The answer is in the numbers. Doing some sort of analysis is paramount in your investment decisions. You cannot make a blind investment without understanding the numbers and the value potential. I like using the short-form dividend discount model to evaluate whether a dividend growth stock is feasible for investment or not. Our guide on how to use the dividend discount model to build a dividend portfolio can serve as a solid baseline for your future success in dividend growth investing. Evaluate
- Read the paper and subscribe to industry news
Most, if not all, of the experts on Wall Street use other people to generate new ideas for investments. You don’t learn about new opportunities without being involved or learning. Warren Buffett spends nearly all of his time reading and learning about new industries, companies and even ideologies. Take time out of your day to become an expert at a specific industry. You’d be surprised how many ideas pop up from reading the news. You just need to keep investing at the top of your mind while reading or watching the news.
- Talk to other experts using the dividend growth strategy
Engagement can be a huge success factor with investing. It is essential for you to get involved in the community of your investment strategy. Engage with experts in dividend growth investing to ask questions or hear others questions. Also, a good debate is healthy. Ask experts why they believe in the value of a dividend growth stock? Or mention that you disagree with their analysis (if you truly do). The best way to learn is to hear the other side of the story.
Conclusion on Finding the Best Dividend Growth Stocks
Building a successful dividend growth portfolio takes time initially. Practice makes perfect. Start getting into a routine to develop successful habits in investing. If you do that, you will find yourself replicating your steps with success as you learn. No matter the market condition there is always value out there. You just need to go out there and find it.
What are you favorite was to find the best dividend growth stocks? Please let me know your comments below. I would love to hear from you!
This is a guest post by Blake Smith. He is an accomplished author and founder of Millionaire Mob.Blake is extremely passionate about helping others learn more about dividend growth investing, passive income ideas and travel hacking. Through Millionaire Mob, Blake hopes to provide the best advice to help you learn and grow along the way.Join the mob of financial freedom experts and escalate your life.