I'm still learning to invest my money correctly and I found my investing strategy and my goal, but I think there's a flaw in my thinking and I wanted you to give me some advice or point me on one direction to read more before I invest some of my money.
So I want to invest for the long term (5-10 years min) into dividend paying stocks for income. I'm not investing anything because I'm still learning (at least for the 2 next years).
I've found my strategy for investing which is:
- 3-4.75% min yield
- 10% growth
- 30-60% payout ratio
- A 10 year history of dividend payout
- 5-10% net income growth annually
- stable or growing operating cash-flow
- low debt
- ROE > 12%
I know this is not perfect but a good start (but any critique is welcome), and for me a company has to fit at least 5 of these 7 criteria before I consider investing. But my investing goal has a flaw, if the company stock price goes up, I can have greater value with my dividend income, but if the share price goes down, I can lose my money, which is not good. What kind of strategy would you advise me to use in case this happens?