3 Keys For Successful Dividend Investing

3 Keys for successful dividend investing... Only three? There has got to be more. Let's look at 3 simple rules... #1 Buy good quality companies. #2 Diversify your holdings. #3 Allow compounded growth by reinvesting your dividends.
To me and almost anyone else these three rules are so old school I'm surprised they still teach them. I like accelerated, exponential growth and let's not forget minimal risk.
I do agree with these three old timers when laying down your investing fundamentals. Let's me show you my keys to the kingdom. #1 Buying only good quality companies is a great place to start. Make a list of the best companies, Dividend Kings, Dividend Aristocrats and there are a few other quality list (check archives). Why these companies? These companies have consecutively increased their dividend payouts to their investors for more than 10 year and some more than 50.
#2 Diversify... I almost don't feel so bad for the guy who lost millions when Enron tanked. Putting all your eggs in one basket is never a good idea. 10 positions bare minimum and not all in the same sector no matter how hot that sector may be. Spread your risk... profits will come with a good plan. #3 Reinvest your dividends for compounded growth. Unless of coarse you need them for monthly income. In that case spend what you have to but but allow some of the profits to increase your principle. The super rich have been using this secret for generations... Spend the interest, leave the principle alone. Let it grow. There is another old trick that some professionals don't want you to know. You don't have to own the stock all year in order to collect a dividend check, only on the date of record.
that is where I stray from the investing professionals pack. Buy before the Ex-date and sell after the date of record for more than your purchase price. This is called Dividend Capturing , it is an easy trading strategy. Collect some small profits and move on to the next dividend stock getting ready to pa