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Dividend Growth Strategy — Building a Passive Income Machine

r/dividendsstocksLong-term (years)by reddit_community

Dividend growth: 10+ year streak, <60% payout, D/E<1, >7% 5yr growth. Buy below 5-year avg yield. Reinvest all dividends. Growing income that beats inflation.

ENTRY RULES

Dividend growth streak 10+ years | Payout ratio below 60% | Debt-to-equity below 1.0 | 5-year dividend growth rate above 7% | Buy when current yield exceeds 5-year average yield | Max 5% portfolio per stock

EXIT RULES

Sell if dividend is cut or frozen | Sell if payout ratio exceeds 80% for 2+ quarters | Sell if debt-to-equity exceeds 2.0 | Trim if any position grows to 8%+ of portfolio | Review quarterly, act annually

INDICATORS

Dividend YieldPayout RatioDebt/EquityDividend Growth Rate

ORIGINAL POST

567
r/dividendsposted by reddit_community

Dividend Growth Strategy — Building a Passive Income Machine

Build a portfolio of dividend growth stocks. Selection criteria: 10+ year dividend growth streak, payout ratio under 60%, debt/equity under 1.0, 5-year dividend growth rate above 7%. Buy when yield is above the stock 5-year average yield (indicating the stock is relatively cheap). Reinvest all dividends. This approach builds a growing income stream that historically outpaces inflation.

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Dividend Growth Strategy — Building a Passive Income Machine | iGotFomo Strategies