3 Ways to Become a Better Dividend Investor | Smart Change: Personal Finance

Investors who prioritize dividends and intentionally build a portfolio of dividend-paying stocks typically see massive rewards in the long run, often receiving thousands in monthly retirement income. Profiting from some stocks relies solely on increases in their stock price, but dividends essentially reward investors for holding onto shares. If you want to become a better dividend investor, here are three things you should do.

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1. Focus on companies that increase dividends

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What largely makes you successful as an investor is seeing the potential in companies and capitalizing accordingly. You should make decisions primarily with the future in mind, not focusing solely on the past or current metrics. A company’s current dividend yield is important, but what dividend investors should strongly consider is its ability to increase its yearly dividend. Companies may pay the same dividend, but if one is increasing its dividend by 10% annually, it’s more attractive.

Certain companies that have increased their annual dividend payouts for at least 25 consecutive years become part of S&P Dow Indices’ Dividend Aristocrats

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