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Author: kelbon Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 8892  
Subject: Re: Reinvesting dividends Date: 2/25/2013 3:32 PM
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Once again I present to y'all

U.S. Dividend Champions
U.S. Companies with 25+ Straight Years paying Higher Dividends




I don't think this a panacea. All things must pass; just because a company has been raising its dividends for 25+ years doesn't mean that you should buy its stock blind with the assumption that will necessarily continue down the same road. Circumstances change. Assumptions are dashed.

Dividend champions is a good place to start, but without a look at each individual company's financials with particular attention to whether or not they are paying their dividend entirely from their free cashflow and what the payout ratio is in both relation to earnings and free cashflow is a good idea if your biggest concern is a sustainable, and rising, stream of dividends.

You might find better candidates from companies amongst the challengers and contenders.

kelbon
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