Strategies For Dividend Investing

strategies for dividend investing

TeknikalRaman Finance & Business POSTED BY: Ranjeet Kumar PUBLISHED: Jun 21, 22 stocks with strong fundamentals

Good dividend investors prefer to focus on one of two strategies:

[{"selector":"#anim-bfbc1979-bd65-4769-8874-9f6c203ac567 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-2002bd84-41cc-4495-8273-7d53de5dac50","keyframes":{"transform":["translate3d(-111.0119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-75f1e503-9b19-44c8-88fa-7aa67f9f556e","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0ceaa4e2-50f3-4ed7-adf0-86eea41abfc5","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

high dividend yield or high dividend growth rate

[{"selector":"#anim-5bcc9220-c026-495a-b3ba-a31738f8b964 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-6bda5eb8-cab4-48b8-b972-e87c3c588501","keyframes":{"transform":["translate3d(-111.90476%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-026ed771-6e42-4d88-8942-cbeffe2f379b","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f54df48-6974-4b5f-a43b-498e71e8fa28","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

Both have different functions to play in a portfolio.

[{"selector":"#anim-883de2ca-a361-4b35-9214-b924c675dbdd [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-eac2c7ec-0da6-4155-9fe2-d821a82ce5d6","keyframes":{"transform":["translate3d(111.30952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-983a22ea-3999-4be0-af7f-84bd12a90512","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0482611d-5b81-4d3c-abf4-ca812762cc5b","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

1. The focus of the high dividend yield strategy is on firms that are slowly developing

[{"selector":"#anim-efcbe8e7-9b38-4f1f-a622-4843781bd9c5 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-4ba9905b-594f-4989-9111-5ca74ad191c5","keyframes":{"transform":["translate3d(-111.0119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f6ccbf19-cfc4-402f-b60c-3631a3c64d3d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-21a83735-d8c9-4836-94ba-2446060aff8c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

and have a lot of cash flow. This enables them to pay out high dividends and may offer you with rapid income.

[{"selector":"#anim-96e2d614-a1da-4680-af66-bbda78cd5418 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-742b225f-5783-4480-afcd-97de2a2aa38f","keyframes":{"transform":["translate3d(-111.0119%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4bf73dde-8f6b-4b81-8f96-a228a1136cfa","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4d972a97-3014-4dfc-a12c-a4c6f1cf4555","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

2. Using the high dividend growth rate as a guide, you should look for firms that pay modest dividends but are rapidly increasing.

[{"selector":"#anim-4a403701-7a17-4079-8015-21d0b01f5787 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-4f4801d5-5e08-4245-8777-0e17ec5715ab","keyframes":{"transform":["translate3d(111.30952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9c58f302-eee0-49f5-9be7-fc36d3ab2077","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-008baf50-974c-4671-999c-4ac6b7f445d6","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

This implies you're purchasing profitable companies at a cheaper price

[{"selector":"#anim-2e258fb6-b96c-4edc-919b-3cf8b2e9e9ad [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-71872d88-2028-4a45-ab81-bbb53dba937a","keyframes":{"transform":["translate3d(111.30952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-62662f0b-c0d0-44b5-b5c6-66773b4c62b2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d928086f-b48d-4c0f-9bbe-6d7dab1a424f","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter

and earning a lot of money over the course of five or ten years.

[{"selector":"#anim-d7597f8d-59cb-46d4-8776-f84a1760bede [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(30.702032919749477%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.14,.34,.47,.9)","fill":"forwards"}] [{"selector":"#anim-fefb6438-7dfa-4b80-ab5c-67f168d5cc62","keyframes":{"transform":["translate3d(111.30952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-12b05144-a395-4baf-9aeb-8c0a40be9ada","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c4bdc2ab-54e2-4e4b-a2ce-48b30f8b48b9","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Image Source- Twitter