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Dividend Investing: The Ultimate Factor
By Dr Wealth  •  March 11, 2019

For: Individuals interested in Dividend Investing, Early Retirement, Passive Income, finding Dividend Stocks.

In this article, we focus on:

The Ultimate Factor to identify good businesses to invest in for passive income as well as how the lack of this factor leads to losses. Real-life case studies using Starhub and Singtel. A list of factors to help you screen the numerous stocks listed so you can dig for gold while avoiding trash.

First: the ultimate factor for investing in companies that provide consistent, sustainable dividends is known as the company’s free cash flow yield.

Why?

Dividends are typically paid from free cash flow yield.

When dividends are affected, the share price of the company is also affected. (We will examine Starhub and Singtel later to show you this effect)

This is relevant for you because as a passive income investor, you want your passive income to come steadily and consistently.

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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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