VZ - 2 Strong Dividend Buys And 2 Sells For Q2 2024

2024-04-03 10:13:00 ET

Summary

• I present you our framework for buying and selling dividend stocks.
• It follows our simple motto of buy low, sell high, get paid to wait.
• Here are 2 brilliant buys and 2 smart sells for Q2 2024.

Written by Sam Kovacs

Introduction

As dividend investors, there are three boxes which we need to tick before hitting buy on a stock:

1. We need to like the business model and its prospects.
2. The combination of dividend yield and our estimate of future dividend growth must be attractive.
3. The stock needs to be undervalued.

Of course there are many ramifications and details that go into these tasks, and getting it right requires skill, thought, and timeliness. But generally speaking if a stock ticks all 3 of these boxes, you might be on a winner. It follows then, that there are 3 reasons for which we might then sell a dividend stock:

1. The business model or the prospects have changed, and we no longer like it.
2. The dividend profile is no longer attractive. Either the dividend has been cut, or the prospects of dividend growth have worsened.
3. The stock has become overvalued.

For further details see: