Two big dividend mistakes many investors make

From Dividend Monk:

Investing in dividend-growth stocks is a pretty robust process for long-term wealth-building. While individual stock selection does require a degree of economic and business understanding, the majority of it rests on common sense and psychological fortitude to keep adding capital and to appreciate down markets for what they are rather than to dread them.

Because it is a suitable investment strategy for individual investors, there also tend to be a few mistakes that I’ve witnessed novice investors make. This article discusses two of those mistakes and presents a number of stock picks that may be off of the radar of some investors due to perceived weakness related to these mistakes.

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1) Not all debt is equal

One mistake is to focus on just one debt ratio when analyzing stocks. I’ve seen investors dismiss strong companies based on perceived balance sheet weakness when just the opposite is true.

The most common…

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