dustbusterz

22 Dividend Stocks with Good Fundamentals

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High dividend stocks are risky at this point, because of the huge slash that has been given to many company's earnings. If a company has a high yielding dividend with a diminishing stock price, most likely that dividend will be cut, shedding more demand for the stock.


my reply to this is yes, if your looking only at the dividend , that can add u to added risk that the dividend could be cut. but there are ways to reduce this risk. you look for companies first, that have consistently paid out over at least a 10 year period. next you want companies with products or services in high demand (even in weak economies) with growing profit margins. after that, your looking for companies with a moat so strong they can ask higher prices (this goes to increasing profit margins). next, look for companies with management that is aligned with stock holders,who will be looking to raise or at least maintain dividend payouts. last,but not least, be looking for companies with plenty of insider ownership. if they have a large stake in the company(i.e. lots of stock) you can bet their going to be doing everything they can to keep that company growing to grow the value of the stock.
so due diligence ,is key . don't buy for high dividends only.