When it comes to dividend stocks, I like to consider multiple criteria, not just dividend yield, dividend growth record, or other factors. Focus too much on dividend yield, and you could become overexposed to potential yield traps.
Focus too much on dividend growth track record, and you may end up buying too many of the lower-yield dividend growth stars of yesteryear, forsaking any up-and-coming names offering higher forward yields that could be Dividend Kings in the making.
With this in mind, weighing yield against dividend growth history, as well as by dividend payout ratios, I have come across three stocks that, at today’s prices, seem like ideal choices for a dividend stock portfolio.
This post originally appeared at The Motley Fool.