Dividend Stock Investing Ideas

Dividend stock investing ideas are more popular than ever as investors chase yield in a low interest-rate environment. But when considering which dividend stocks to purchase, you should ask the question of what constitutes a best in breed dividend stock. There are key metrics you should focus on: consistent long term dividend payments, dividend growth rate, a low dividend payout ratio, above average return on equity, above average sustainable growth and a durable competitive advantage.

For younger investors especially, a disciplined dividend growth investing plan is a sure path to financial freedom. With that said, focusing in on the highest yielding stocks as a part of your portfolio makes some sense. The idea of getting 6-14% annually on a passive investment is hard to pass up. However, these lofty yields are rarely sustainable and you should be aware of the higher risks you are taking in return for the higher yields.

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