Building long-term wealth is the goal for many. Building a passive income stream from dividend stocks is a dream. Personally, I’ve always been drawn to dividend growth investing, so it’s natural that companies on the Dividend Aristocrats and Kings lists often come to mind, as they have a long-standing history of increasing dividends.
However, dividends alone aren’t enough to support the long-term growth of an investment portfolio. It's important that we look at other factors such as cash flow and net income growth, and then reinforce it with what the analysts say before taking the plunge. I also like to look at price targets to get an idea of where the stock might go in one year. Naturally, we don't want to buy high, only for the stock to drop.
