Smart Beta Dividend Income Portfolios For Catholic Investors

When I started working in a bank at the age of 23, I quickly understood that I should start saving money for my retirement. Typically dividend investing involves selecting companies which feature an attractive and sustainable dividend yield. Too much of concentration can impair your portfolio's ability to generate income in the longer-term and reduce your capital base. If you want to invest in dividend stocks in an IRA, make sure to sign up for an IRA with a company that allows you to buy and sell individual stocks and not just own mutual funds.

You may never even have to sell any of the shares of stock you own, which will allow you to leave a significant inheritance for your children and your grandchildren. The ratio determines how the company generates the worth of returns alongside the value of dividend that it could pay.

By failing to do this will have a direct impact on the companies share price so after declaring such a clear strategy they will think twice before failing to deliver dividend growth in real terms. My goal is to mitigate that risk by buying stocks in different sectors and not having more than 5% of my porfolio dividend income coming from any single stock.

When Coca-Cola's board of directors decides to distribute part of the company's profit in the form of a dividend, you are entitled to your share of the profit distribution as a part-owner in the company. A business with a strong, durable competitive advantage and a long history of rewarding shareholders through dividends and share repurchases will compound your initial investment as it grows over time.

Striking a balance between the dividends paid to shareholders and the growth potential is necessary for a company that intends to earn higher returns in the long run. XYZ also announces that shareholders of record on the company's books on or before August 12, 2013 are entitled to the dividend.