Dividend Investing Tips

The first key to dodging a dividend austerity crisis is ensuring your overall income-producing portfolio is balanced and diversified. The second key is to know your companies' exposure to an austerity crisis. I advise running the fol­lowing checklist:

Revenue Reliability: Almost every stock took a bath in the market meltdown of late 2008. But compa­nies that kept their sales steady during the crisis and the deep recession that followed have proven their ability to weather the toughest of times.
Payout Ratio Visibility: No dividend is sustainable without the profits to back it up.
Manageable Debt: A low absolute level of debt is preferable.

Source: Market Watch

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