After trading for nearly 30 years, one of the best things I’ve learned is that it pays to be picky when looking for income-generating stocks. Sure, high yields are attractive, but a company that has high yields and the ability to sustain them is worth its weight in gold. Even better if such companies have a good track record of increasing dividends, preferably consecutively.
Now, there are groups of companies like Dividend Aristocrats and Kings that already offer the qualities I like. But that doesn't mean we need to limit ourselves to those top-shelf companies. Sometimes, there are dividend-paying gems exhibiting high growth, low payout ratios, and decent yields that are waiting on the sidelines.
