3 ESSENTIAL ELEMENTS FOR HIGH-GROWTH DIVIDEND STOCKS
As someone who is constantly on the hunt for forever growing, cash-flowing dividend stocks, I've come to realize that these three financial elements are crucial. š
First and foremost, we want to see growing revenue. It's the lifeblood of any business, and without it, a company will have a hard time sustaining its dividend payments.
Next, we want to see growing earnings per share (EPS). This is a sign that a company is effectively managing its finances and generating profits. With increasing earnings per share, a company is more likely to be able to afford increasing its dividend payouts and continue rewarding its shareholders.
And last but most certainly not least, we want to see growing free cash flow. This is the extra money a company has left over after paying all of its bills, and an increasing amount of free cash flow means the company has more opportunity to do any of the following:
Reinvest back into the business
Pay down debt
Pay/grow the dividend
Buy back shares
DIVIDEND INVESTING DEMOCRATIZED
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While we're on the subject, share buybacks are also great to look out for. When a company buys back its own shares, there are fewer shares outstanding, which means that the money allocated towards the dividend is spread across a smaller number of shares, making it less financially demanding to maintain.
If you're looking for a stock that possesses all of these essential elements, I've got one for you right here. With a track record of strong revenue growth, increasing earnings per share, growing free cash flow, share buybacks, AND a double-digit dividend growth rate, this stock has a lot to offer and I'm heavily considering adding it to my portfolio.
With that said, what was the last stock you added to your portfolio? Write to me here and let me know.
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