As a dividend growth investor, it’s hard to make sure the decision you’re about to take is the best one: you do your research, you find an exciting industry, you identify 3-4 companies that are doing well in that industry, and then what? How to make sure the final stock pick is the right one for your portfolio?
Here’s a 6-step canvas to compare two stocks!
- How to play defense or offense in your portfolio.
- The importance of understanding a company’s business model when comparing two dividend stocks.
- What the dividend triangle can tell you about your potential buys.
- How to identify a company’s growth factors and dividend safety, and why it is important.
- How to make sure you’re not missing any potential risks when doing your comparison.
- Why you should NOT base your final decision on the dividend yield.
- A real-life case study using Granite REIT and CT REIT.
As we used two REITs as examples, you might want to dig deeper into this sector. You can do so in this podcast episode:
We also quickly discussed the two ranking systems we use: the DSR PRO rating and the Dividend Safety Score. We believe every investor should have all of its stocks ranked. Having a rating system will ease your buy & sell decisions and avoid dilemmas. Therefore, you might want to watch the videos below to get inspired.