Constructing a Dividend Growth Stock Portfolio for Total Return

Dividend Growth Stock Portfolio – Stock Selection Process

A common mistake that investors make regarding dividend portfolio construction is not having a well-thought-out plan. It is quite common for investors to compile what could best be described as a “junk drawer” instead of a successful strategy. The reasons for this are many. Over time investors run into many distractions. A hot tip from the brother-in-law. An overzealous stockbroker. Hype about the next greatest thing from the media, etc.

Nevertheless, I am a believer, based on years of experience of having a plan and then following that plan. To be clear, there is no reason to have a plan if you are not going to be disciplined towards following that plan. Moreover, the plan must meet your own unique goals and objectives and most importantly satisfy your individual needs. Some investors may require a certain level of income from their investments, while others a level of needed growth. Every one of us is different, and even though some would like to make you think that there is a clear path for everyone, there is no one-size-fits-all.

In this video I am going to share a process that I like to use to select stocks that meet specific criteria. Importantly, it is the process that I am focusing on and not the individual stocks. In other words, I will be illustrating just one example of many possible examples that investors could implement or utilize. The key is to develop a strategy that will accomplish the goals and needs that you the individual investor require to have a successful investment result. Formally, this would be called an investment policy statement. But as previously emphasized, the strategy implemented must be capable of clearly satisfying your own unique needs.