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A 5-step approach to investing in dividend stocks

In this first episode, I break down everything I know about dividend investing into five basic steps. These steps then form a solid foundation upon which everything else in my investment strategy is built. So if you're looking for a high-level overview of dividend growth investing, this is it.

The five steps are:

  • Step 0: Think like a business owner (more of a foundation than a step)
  • Step 1: Identify quality dividend growth stocks
  • Step 2: Estimate fair value based on future dividends
  • Step 3: Buy stocks when there is a significant margin of safety
  • Step 4: Invest more into the best stocks
  • Step 5: Diversify to reduce risk