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SCD stands out due to its balanced approach, which emphasizes the quality of investments over merely high dividend yields. High-yield stocks can bring risks, particularly during market downturns. SCD’s methodology involves investing in companies that not only meet the dividend payment threshold but also show a commitment to increasing those dividends year-over-year, aiming to provide investors with both dividend income and capital appreciation.
Criteria for Selection
The selection process for companies included in SCD is rigorous and guided by three main criteria:
- Consistent Dividend Payments: Companies must have paid dividends for at least 10 consecutive years.