Value Line Dividend Select focuses on companies with dividend yields greater than the average of all stocks covered by Value Line, with a preference for companies that have consistently increased their dividends above the rate of inflation over the longer term and, based on Value Line analysis, have the financial strength to both support and increase dividend payments in the future.  Recommendations are backed by in-depth research and are subject to ongoing monitoring by senior research personnel.

What criteria will our analysts be looking for?

• Dividend growth is a high priority. A dividend growth rate of at least 3% per year for seven of the past 10 years will be required. We will not recommend stocks with stagnant dividends.
• Financial strength. To make the cut a stock must be rated B+ or better.
• Safety. Recommended stocks must have a safety rank of at least 3, using the Value Line rating system.
• Strong cash flow. Because dividends require cash, we expect the company’s cash flow to fully cover expected capital spending and the dividend with an ample cushion.