How To Analyze Dividend Stocks - Financial Freedom and Cash Flow (Part 1)

You want to invest in dividend-paying stocks for cash flow and passive income. You want to build a dividend stock portfolio, one that features a growing stream of passive income over time. However, you don't know how to analyze stocks to determine if they are a good fit for your portfolio. Today's video features my personal strategy on how I analyze stocks.

While I originally wanted to film a long, multi-hour video on dividend stock analysis, I figured it would be more practical for me (and you) to film several shorter videos. Today's video is the first in this series, a long-time subscriber request!

The first step of analyzing a dividend stock is actually determining if it belongs on your watch list at all. Today's video covers the basics, my first seven filters:
1) Have I heard of the company? Do I use their goods and/or services? Do I have extensive experience with the company, and believe in their bright future?
2) What is the company's market capitalization? Does it fit into my sweet spot?
3) What is the current dividend yield? Does it match my strategy?
4) What is the dividend payout ratio? Is it sustainable?
5) What is the current price per share? Is the stock selling at a 52-week high, or is it "on sale"?
6) What is the PE ratio? Does it fall into my desired range?
7) What is the dividend history? Has the company increased dividends over time? If so, what is the annual rate of increase? Does it fall into my desired range?

I recently added to my Kimberly-Clark (KMB) position. In today's video, I go through my stock analysis filters with KMB as the example.

As a related video, here's how I personally source new stocks for my portfolio:
   • Dividend Investing: How I Find Stocks (Sel...  

Disclosure: I am long Kimberly-Clark (KMB) stock.

Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.

All content on my YouTube channel is (c) Copyright IJL Productions LLC.