When most investors hear about a momentum stock, they expect to see a chart with multiple zig-zagging trend lines. However, I believe the trend can also be your friend with fundamental data and help individuals find potential winning investments.
Price momentum is important for traders looking to make a quick hit in days or weeks, but fundamental momentum can help investors generate a steady and growing amount of dividend income over a period of years.
The key for any stock that pays a dividend is the underlying profit that supports the payout each period. Investors have historically rewarded companies that consistently exceed (or surprise) expectations and higher earnings can lead to higher future dividends.…