My personal portfolio goal is to create an income stream from dividends paid out by low risk, financially strong (high-quality) companies. Reinvesting your portfolio income is also an essential part for your financial freedom.
Reinvesting your dividends received from high-quality dividend growth stocks is a great, relatively conservative and proven way to build wealth over the long term.
This is especially true and appropriate for investors in the accumulation phase that are planning for future retirement. Accumulating additional shares of dividend growth stocks can, and will, provide an increasing and eventually larger stream of income available at retirement when income is needed most.
Attached you can find a list of stocks that might be interesting for long-term investors who like to reinvest their dividends in their portfolio while looking at raising dividends.
My main focus was on valuation. If you buy a stock at a moderate valuation, your initial yield should help you to get a solid starting yield.
Every stock on the attached list has a dividend yield of more than 3 percent. Debt-to-equity ratio is under 1, EPS growth for the next five years over 5% and the forward P/E under 15
As a result, 13 stocks remained on my screen. Some of them might also be interesting. It's a first step for further research but good to find value stocks with a decent income as inflation hedge.
Here are 13 top stocks for re-investing...