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How an ISA millionaire chooses stocks

Money Clinic with Claer Barrett

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The Magic of Dividends

A dividend essentially is paid by a company out of its profits. It gives you an indication of the broad profits level that the company anticipates making in the following year. Most company chiefs and boards don't want to pay out a dividend in one year and then have to reduce it in the next year. And I like to see companies that are fairly conservative, that are carefully stewarded - they're cash rich.

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