In my previous post, I talked about the the power of dividend stocks. Today, I shall share my very own guide to picking dividend stocks. Of course, some investors are more stringent while others are more lax. So, feel free to make adjustments according to your personal risk appetite and investment style.
A guide to picking dividend stocks:
1. Dividend Yield of at least 6% (to beat the rising inflation in Singapore T T )
2. P/E ratio of roughly between 13 to 17 for Singapore firms
3. Consistent, stable and regular distribution over the last 10 years
4. Recurring revenue streams in a defensive economic sector
5. Stock Price is not volatile
6. Capable, prudent and forward-looking corporate management without over-leveraging
Alright. Now, let's put the so-called blue chips in my "Singapore-flavoured" dividends portfolio to the test. (I will deal with the REITs at a later date ......
