How to Invest in Dividend Stocks

At IBD, we are typically focused on growth stocks and outperforming the market. Dividend investing is definitely different though. You don't want to buy stocks that might have an attractive dividend, but a poor price action in the market. We actually want to find those stocks that have some decent strength and have a record of rising in price. Finally, great management by the company to innovate, create new products and sustain the earnings that allow them to raise their dividends.