Dividend investors should target profitable businesses demonstrating earnings growth to ensure sustainable dividends. Utilizing payout ratios can help gauge dividend sustainability. Passive income investing requires skill that can be developed through education and patience. Selective stock picking is crucial, avoiding random high-dividend stocks in favor of those that meet specific criteria. Large companies like JPMorgan Chase, with strong market capitalization and long-term growth potential, represent ideal candidates for investment. Financial solidity, revenue growth, and a history of share price appreciation are critical indicators for inclusion in a dividend stock portfolio.
The first green flag in my dividend stock checklist is that a company needs to be very large with a market capitalization in the billions, and JPMorgan Chase certainly fits this description.
I only want to buy stocks that tend to go up over the long term. Otherwise, even if I make money from dividend payments, I could end up losing money because the share price is going down.
Before putting a stock in my portfolio, I want to make sure that the company is financially solid. Therefore, I look for profitable businesses with revenue growth.
Passive income investing is a skill that you can master with just a little bit of patience and education.
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