Everyone has their investment style and preferences.
Some investors may prefer chasing growth, while others are content with receiving stable, regular dividends.
Dividend investors can be further segmented into those who go for dividend champions or those who prefer the safety and stability of dividend stalwarts.
A dividend stalwart is defined as a company with a great track record, rock-solid balance sheet and dependable dividends.
Although dividends may not be rising rapidly, such companies also deserve a place in an investor’s portfolio for the safety and stability they bring.
A stock that pays rising dividends could also be priced more expensively, thus increasing the risk that there may not be an adequate margin of safety upon purchase.
We believe a diversified portfolio should contain a healthy variety of stocks — companies geared for fast growth, dividend champions as well as dividend stalwarts.
Here are two companies that fit the bill when...