Dividend stocks reward investors with regular cash payments (usually paid quarterly) that investors can use as supplemental income. They can also reinvest those dividends, which allows shareholders to accumulate shares over time while enjoying compound returns.
Like any class of stocks, some dividend stocks are better than others. Dividends are a portion of a company's profits that a company pays back to shareholders. That leads some investors to focus on the company's dividend yield. This is a measure of how much a company pays in dividends relative to its stock price.
However, the best dividend stocks tend to be those that continue to increase their dividend while expanding the growth of its business. That means looking at companies that have a history of generating strong free cash flow.
Finding stocks like those is the focus of this special presentation. To come up with this list of stocks, we prioritized free cash flow (FCF) growth as one of the key factors for choosing a buy-and-hold dividend stock. Free cash flow is a key measurement of a company's ability to not only pay, but increase, its dividend.
Click the "Continue to Slide #1" button to view the first company.
