We continue our series on dividend income with how to find safe low-yield, high-growth dividend stocks. Mike uses 3 main steps and reveals his best secrets to find the perfect dividend growers.
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You’ll Learn
- While it sounds simple, a stock screener will set the bar with the minimum metrics to find the best dividend growth stocks.
- Mike describes which metrics he uses and why he is capping the yield at 2%.
- There could be hundreds of results after this first set of metrics. This is why step number 2 is to narrow down by sector. Mike and Vero also discuss the sectors where finding low-yield, high-growth stocks is harder.
- The last step, but surely not the least, is to review each business model. How should investors do it and what should they make sure of? Should investors also look at cash flow and debt level in this last step?
- For some investors, low-yield, high-growth stocks can also rhyme with small-caps, which are often more volatile. Is market cap important when looking for dividend growers? And should retirees discard small caps?
- Vero questions Mike about the possibility of him selling some of his favorite shares in case they become mature businesses with less growth. Will Mike sell Couche-Tard at one point?!
- We end the episode with some more red flags and a summary of how to find low-yield, high-growth stocks.
Related Content
If you missed last week’s episode on Why Low-Yield, High-Growth Stocks Matter, wait no more and hit the link below! This thought-provoking episode is a must-listen!
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This podcast episode has been provided by Dividend Stocks Rock.
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