Dividends are a portion of a company's profits that it pays back to shareholders. That leads some investors to focus on the company's dividend yield, a measure of how much a company pays in dividends relative to its stock price.
Dividend stocks reward investors with regular cash payments (usually paid quarterly) that they can use as supplemental income. Investors can also reinvest those dividends, which allows them to accumulate shares over time while enjoying compound returns.
Like any class of stocks, some dividend stocks are better than others. The best dividend stocks tend to be those that continue to increase their dividend while expanding the growth of its business.
To find companies that accomplish that, you should look for those with a history of generating strong free cash flow (FCF). So to come up with the list of stocks in this special presentation, we chose FCF growth as one of the key factors.
Click the "Continue to Slide #1" button to view the first company.