The Perfect Dividend Stock!
I love meeting other investors. It’s always great fun to meet other people and share our investing passion.
One of my favorite topics is about the Perfect Dividend Stock.
Is there such a thing?
Some investors say YES, Others say NO!
What I say next might throw you for a loop.
I don’t believe there’s ONE Perfect Dividend Stock… Nope, I think there are DOZENS!
If you’re not seeing stars over that comment, hold tight, because I’m going to do something crazy.
I’m going to argue that depending on your situation… you too might find a dozen or more perfect dividend stocks!
Let’s take a quick step back….
The Truth About Dividend Stocks
Here’s the cold hard truth about dividend stocks…
There are tons of investment choices and there isn’t just one perfect one!
Just take a look at Coke (KO)
This is a stock that Warren Buffett loves. And the reason is obvious.
This is a 30 year chart of KO. As you can see, adjusted for splits, the stock was under $1 a share 30 years ago ($0.90 on January 2, 1986) . Today, it’s $46.39 a share… an impressive gain of 5,054%.
But that’s not the exciting part…
Back in 1986, the stock paid a nice dividend, split adjusted, of $0.01625 per share. I know it doesn’t seem like a lot, but consider this… the stock dividend was growing. By 1991 the payout was $0.03 a share… by 1999 it was $0.08 cents a share… by 2005 it was $0.14 a share… and the last dividend payout was 0.35 cents a share.
The dividend grew… 2,053.8%
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All told, for every $0.90 cent share you bought, you would have received $14.99 in dividends!
That’s 16.6 times your money in cold hard cash!
Not to mention the stock went up too…
KO is a Perfect Dividend Stock.
Coke (KO) made a lot of retirees very, very happy.
Now, I’d make the argument that while Coke looks like a perfect dividend stock, it’s just one of many. If you find 3 or 4 or 5 other stocks that look just like Coke, what makes them better than the other?
They are all the same.
Each and every dividend stock in your portfolio plays an important role. Every dividend stock is there to work for you and throw off as much cash as possible.
You are putting your money to work for you… and success is measured by the dividends you receive.
It’s that simple.
What you want to do is look for solid dividend stocks that pay a nice dividend. Ideally the business is growing, and the Dividend is growing too!
Remember those great Coke Dividends… you want to get the same thing!
So how do you find these perfect dividend stocks.
I’m not going to lie, it’s hard work and it takes time.
I’ve put together 10 rules of Dividend investing and they will help you find and invest in those perfect dividend stocks.
Ready? Here they are:
- Get a dividend investing plan and stick to it.
- Start NOW – Don’t drag your feet.
- Keep your investing plan simple.
- Investing CONSISTENTLY is more important than investing BIG!
- Always invest for the long term.
- Understand what dividend stocks you’re buying.
- Be a business owner, not a stock trader.
- Stock up when your dividend stocks are on sale!
- Don’t avoid “Pass Through Entities” as investments.
- Finally, with dividend investing, boring is good.
Now, I don’t have time to get into all the details of each of these rules… or the follow-up questions you need to ask.
But, what I’ve done is put together a free report – the Ultimate Guide To Dividend Investing.
In the report, I go over each of these 10 dividend investing rules in detail….. Touch on the 4 critical questions you need to ask, and expose the 4 dividend investing metrics you need to focus on.
In addition, I share 13 stocks for a great Dividend Portfolio. Sign up today!