INVESTOR TYPE · DIVIDEND COLLECTOR
Dividend Collector
Prices can swing, as long as the dividends keep landing in the account
Metrics to watch
My investor type
Dividend Collector
- Dividend yield
- Payout ratio
- Dividend streak
What it means
You prefer steady cash flow to price gains. Dividends arriving every quarter put your mind at ease, and you look for companies to stay with for a long time rather than quick in-and-out trades.
So you look beyond the dividend yield to whether the dividend can continue. A dividend that profits cannot support rarely lasts, so it helps to look at the payout ratio and the dividend streak as well.
Strengths
- Less shaken by volatility and holds on for the long run
- Easy to plan cash flow
Points to watch
- Can miss the high-yield trap, where the yield looks high only because the price fell
- Can pass over fast-growing companies
Worth a look on Jupick
This result is reference content that describes an investing style. It is not a suggestion to trade any stock and not investment advice. Investment decisions and their responsibility rest with you.