Comments on: Criteria for Selecting Dividend Stocks http://www.thedividendguyblog.com/criteria-for-selecting-dividend-stocks/ One Guy's Journey to Passive Income Through Dividend Investing Fri, 10 Feb 2012 13:02:29 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Yielder http://www.thedividendguyblog.com/criteria-for-selecting-dividend-stocks/comment-page-1/#comment-19668 Yielder Wed, 29 Aug 2007 00:33:44 +0000 http://www.thedividendguyblog.com/2007/08/21/criteria-for-selecting-dividend-stocks/#comment-19668 You cannot have dividend growth > earnings growth without the payout ratio increasing. Personally, I like to see dividend increases each year over an extended period rather than "more than one dividend increase in the past five years". I like to see an fairly stable increase. Slowing dividend increases is an alarm bell. I also like to see a strong balance sheet with little debt since interest payments must be made before dividend payments and any earnings squeeze will result in a dividend cut before a default. You cannot have dividend growth > earnings growth without the payout ratio increasing. Personally, I like to see dividend increases each year over an extended period rather than “more than one dividend increase in the past five years”. I like to see an fairly stable increase. Slowing dividend increases is an alarm bell.

I also like to see a strong balance sheet with little debt since interest payments must be made before dividend payments and any earnings squeeze will result in a dividend cut before a default.

]]> By: 1wealthbuilder http://www.thedividendguyblog.com/criteria-for-selecting-dividend-stocks/comment-page-1/#comment-19566 1wealthbuilder Sun, 26 Aug 2007 13:33:01 +0000 http://www.thedividendguyblog.com/2007/08/21/criteria-for-selecting-dividend-stocks/#comment-19566 Great post, I like the simplicity of the strategy when doing DD. I agree with you on the KISS aspect of it though. I doubt many other criteria strategies will be as straight forward. I would however include a "Buffetesk" criterion: companies that are not affected by trends or sweeping innovations (gum, soda, potato chips, etc.) usually provide an additional level of stability and hopefully safety. If there is such a thing. Great post,

I like the simplicity of the strategy when doing DD. I agree with you on the KISS aspect of it though. I doubt many other criteria strategies will be as straight forward.

I would however include a “Buffetesk” criterion: companies that are not affected by trends or sweeping innovations (gum, soda, potato chips, etc.) usually provide an additional level of stability and hopefully safety.

If there is such a thing.

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