I research Dividend stocks on a weekly basis
Companies have to check the boxes before I invest in them
Here are some of the top things I look for in stocks 👇👇
Companies have to check the boxes before I invest in them
Here are some of the top things I look for in stocks 👇👇
1/ Revenue Growth
Revenue is where everything starts. It is not the end all be all, but continued revenue growth is important
Revenue is where everything starts. It is not the end all be all, but continued revenue growth is important
2/ Operating Income
Operating income I would say is more important than top line revenue
This is where management teams can separate themselves based on how efficient they can run the business
Operating margin to me is more important than gross margin
Operating income I would say is more important than top line revenue
This is where management teams can separate themselves based on how efficient they can run the business
Operating margin to me is more important than gross margin
3/ Cash Flow is King
This is the bread and butter of all companies
Free Cash Flow is what is left over after operating the business and necessary CapEx
Dividends are paid from FCF
Debt is paid from FCF
This is the bread and butter of all companies
Free Cash Flow is what is left over after operating the business and necessary CapEx
Dividends are paid from FCF
Debt is paid from FCF
4/ Dividend Safety
When reviewing dividend stocks, it is important to NEVER chase yield
You want to focus on the safety of the dividend
You can do this by calculating the payout ratio or you can take it a step further a calculate the FCF payout ratio
When reviewing dividend stocks, it is important to NEVER chase yield
You want to focus on the safety of the dividend
You can do this by calculating the payout ratio or you can take it a step further a calculate the FCF payout ratio
5/ Dividend Growth
Dividend growth is a key thing for me in my current investing journey
The POWER of COMPOUNDING Dividends cannot be denied
The safest dividend is the one that just got raised
Dividend growth is a key thing for me in my current investing journey
The POWER of COMPOUNDING Dividends cannot be denied
The safest dividend is the one that just got raised
6/ Balance Sheet
The Balance Sheet can determine the health of a company
Certain metrics include:
- Current Ratio
- Debt/EBITDA
- Credit Rating
The Balance Sheet can determine the health of a company
Certain metrics include:
- Current Ratio
- Debt/EBITDA
- Credit Rating
7/ Management Quality
This often goes unnoticed, but a management team drives key decisions
A high-quality management team can run efficient businesses
A high-quality management team can continue to grow
A high-quality management team properly utilizes capital
This often goes unnoticed, but a management team drives key decisions
A high-quality management team can run efficient businesses
A high-quality management team can continue to grow
A high-quality management team properly utilizes capital
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