Key Metrics That Signal Strong Dividend Growth Potential

Focusing on companies with a history of dividend growth and the financial strength to sustain it increases your odds of realizing higher total returns.

There are close to 2,000 exchange-traded companies that pay dividends. Many investors favor them for the ongoing stream of portfolio income they generate. Plus, the ongoing payment is a sign of fundamental strength. After all, a company that lacks adequate cash flow cannot afford to pay dividends.

Not all dividend payers are the same. Research by Ned Dav…