Characteristics of Great Dividend Growth Stocks
by | Posted 4.16.2013 | Post Comment (No Comments)

What makes a great dividend stock? Investors in dividend growth stocks are looking for stocks that will increase their dividend each and every year at a rate that makes the stock a better investment than fixed income alternatives on a risk adjusted basis. I have found that stocks that are able to do this share some common characteristics. They include…

Brand Recognition/Low Price
During an economic downturn consumers may flee many popular brands if their cost is high and generic alternatives are substantially cheaper. Procter & Gamble Co. (PG) saw this occur in some of their premium brands like Pampers and Tide. However, most people aren’t willing to save a few pennies on a generic soda of unknown quality when a Coca Cola Co. (KO) or Pepsico Inc. (PEP) is available.

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