Six Signs of a Winning Stock: High Dividend Stocks is one of them

There recently was an article by the Motley Fool that listed six signs that a stock is a good one - high dividend stocks happened to be one of them:

4. Dandy dividends
In our research, we're constantly studying past big winners to find the common ties that bind them. Retailer Family Dollar Stores (NYSE: FDO) and consumer products giant Procter & Gamble have different business models. Both, however, have trounced the market over the years, and both have paid a dividend ever since they were small companies -- in P&G's case, since 1890!

Just because a company is small and pays a dividend, though, that does not mean it is destined for greatness. But a dividend is a positive indicator, a telling sign of both financial strength and management's confidence that the company will continue to be solid through good times and bad. Progressive began paying its dividend back in 1986, when it was still capitalized at around $250 million.


Interesting perspective on the high dividend stocks strategy.