June 17, 2023
Do not simply purchase the highest yielding securities
Analyze the financial condition of the company to ensure that their dividend is sustainable
Compare the current dividend to the free cash flow. If it is above 100%, the company is borrowing to pay their dividend.
Review the current and projected growth in operating cash flow to determine if the company has the ability to increase their dividend.
Purchasing a company with a low dividend yield that has a rising dividend stream is preferable to buying a high dividend yield security.