3 Dividend Stocks to Double Up on Right Now
Dividends are a great source of passive income that can help to supplement your earned income. The good news is that it's not tough to identify and purchase a basket of dividend stocks that can help you generate this income stream.
There are several characteristics that I look for when filtering out good dividend stocks for my portfolio. First, they must be a highly cash-generative business and possess a leading market position that ensures they can continue to churn out healthy and growing free cash flow. They also need to demonstrate a solid track record of paying out increasing dividends over the years.
The key to growing your dividend income is to steadily purchase shares of such companies and then compound your dividends by reinvesting them in the same companies. Over time, the increase in dividend per share, along with a higher stake in the business, will enable you to increase the amount of dividends you receive per year. The idea is to build up a stream of retirement passive income that you can comfortably rely on in your golden years. It is not a difficult process to understand, but it does take patience and perseverance.
Source Fool.com
