Here's 1 Sign of a Great Dividend Stock
The best dividend-paying companies are ones that go beyond the basics of simply directly paying their shareholders for the risks they take from investing. The way they do that is by increasing those dividends over time as the business grows, boosting the rewards of ownership and enabling those shareholders to profit while staying invested.
Indeed, when looking for great dividend stocks, the No. 1 sign I look for is an answer to this question: "How sustainable is this company's ability to continue increasing its dividend?" There are many factors that feed into the answer to that question, and when they all work together, the result can truly be a remarkable business to own. The three factors we'll discuss in particular are key.
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Source Fool.com
