Here's How to Find the Best Dividend Stocks

Many investors chase growth stocks during bull markets. Yet stable dividend stocks are generally more attractive during market downturns since high yields can limit their downside potential. It can be tough to tune out the noise and find the ideal dividend stock, but these simple guidelines might help.

Investors should hold their dividend stocks for long periods, since dividend reinvestment plans (DRIP), dollar-cost averaging, and compound returns can significantly boost their overall gains. Therefore, investors should seek out companies with long histories, wide moats, and consistent growth in profits and free cash flow (FCF).

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Source Fool.com