Collecting Sexy Dividends

Lots of people have thought about long-term dividend trading as boring, dull, and not sexy. This belief is probably because of solid dividend companies yielding under 10% of dividends yearly and frequently yielding under 5% yearly. The process organized in the following paragraphs will shake up some misconceptions and hopefully changes peoples' opinions of dividend trading from boring to completely sexy. This tactic may be used on most companies, even companies that have paid dividends for a lengthy, lengthy time period.

Presenting The Sexy Dividends Strategy

The Sexy Dividends strategy entails selecting companies in the S&P 500's High Yield Dividend Aristocrats report with various dividend payments throughout every season. By selecting companies in the S&P 500, you're thinning your total potential companies to 60 and only choosing from companies that are members of the S&P 1500 Composite Index. Additionally, you're diversifying your companies based on their dividends due dates. This enables you to definitely create monthly streams of earnings moving forward. If this is the first dividend company you are investing in, you can just decide to pare your possible companies to individuals that pay returns within the month of the month of January. The simplest way I've found is to use the S&P 500 High Yield Dividend Aristocrats list.

The next phase within the Sexy Dividends Strategy is to limit the industries you'd enjoy having companies in. By diversifying across industries, you're lowering your risk to some recession in almost any single industry. This tactic is about reducing risk within the long-term and diversifying across industries is among the ways to achieve that!

Once you've made the decision upon the month, your list ought to be simplified to a couple of options. From here we can turn to the 2nd portion of Aristocratic Dividends and browse the profile of all these companies. The Sexy Returns Strategy suggests the year-over-year dividend growth be examined carefully. Furthermore we would like companies which have been having to pay returns consistently on the lengthy time period, but additionally companies which have been continuously growing returns with time. Purchasing and reinvesting returns in firms that consistently raise their returns versus firms that only slightly improve their returns have a huge effect on our returns with time.

In summary this tactic to date:

1. Figure out what month you would like to get your dividend payment

2. Determine the industry for the potential company

3. Compare these businesses based on year-over-year dividend growth

Note: Steps 1 and 2 could be switched as desired.

At this point you're most likely thinking, "What makes this strategy stand out?" And you'd be justified in wondering that because there's nothing sexy relating to this strategy - yet.