What should buy-and-hold investors look for in a dividend stock? Three key factors are essential. First, a conservative payout ratio of under 50% signals that the company isn’t overextending itself to maintain dividends. Second, there should be a proven track record of annual dividend increases spanning decades. And third, you should look for a strong economic moat that helps protect the company’s profitability.
This post originally appeared at The Motley Fool.