Dividend Growth Investing Rule #2: Know the Fundamentals

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For the long term investor, fundamental analysis is crucial. We aren’t trying o capitalize on short term fluctuations in share price. As dividend investors we aim to protect our principle while generating long term growth through dividends by investing in fundamentally sound companies that continue to grow earnings and market share year after year.  If we are to confidently deem an individual stock attractive, we must first know and understand the underlying financial metrics and their role in analyzing risk and long term growth potential.

As I write more articles relating to various aspects of fundamental analysis, I’ll update the list below.

Quantitative Analysis vs Qualitative Analysis

Positive Cash Flow

Low Debt/Equity

Historical Growth Rate

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