How to Invest in Dividends?
How do you invest in dividends?
Below are tips of how to invest in dividends
or how to find good dividend investments.
Quality companies with quality balance
sheets and positive cashflow:
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Free cash flow is defined as net income adjusted
for changes in working capital, depreciation, real
investments and financing activities.
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Free cash flow is genuinely “free”– it’s calculated
after dividends, share buybacks and capital
expenditures.
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Therefore, free cash flow can be a good indicator
for a company’s potential to raise any of the
above– notably future dividends.
What companies are great dividend
investments?
Key Investment criteria in equities and
equity related investments:
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Members of the S&P 500
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Companies with quality balance sheets and positive
free cash flow
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Companies with a senior debt rating of A- or better
by Standard & Poor’s
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Above-average yielding equities and equity related
investments
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Equities rated Overweight/Equal-weight or
Attractive/Inline by fundamental industry analysts
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