John Rockefeller once said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” But you don’t need to be a tycoon to know that holding dividend-paying stocks is a sound strategy for producing steady income from your portfolio.
Unfortunately, stock investing offers no guarantees. Just because a company has distributed money regularly to its shareholders in the past doesn’t mean it will keep doing so, nor can you be sure it will maintain its payout level. However, you can take some prudent steps to increase your odds of picking high-quality dividend stocks that won’t leave you disillusioned.
Examining key financial figures can help you pick companies that are likely to keep distributing those regular payments.