Not exact matches
Balanced funds, which usually invest in a
mix of about 60 percent stock to 40 percent bonds,
growth and income funds, or equity income funds that invest in well - established companies that pay
high dividends, might be appropriate choices for a mid-term portfolio.
With this
mix, you would have a total return that includes a bond with a
high coupon, and common stock, which has a small
dividend and
growth potential.
But something especially incredibly happens when you combine a holy trinity of wealth creation:
high current
dividends, plus a
high dividend growth rate, and then
mix it with the decision to reinvest the cash into even more shares.
Think of it like this: If you have $ 30,000 in a tax - free account with
dividends reinvested, you can put yourself in the position to have 8.5 % annual
growth plus 1.5 % returns coming from
dividend reinvestment, so you could realistically compound your money at 10 % annually over that time frame, due to the nature of
high - quality cash generating businesses
mixed with long periods of time and tax - favored holding structures.
You
mix high income, slow
growth investments with investments with rapidly growing
dividends and a lower initial yield.
I know you (& everyone) want to be officially FI as soon as possible, and it's easier to get there with 3 % -4 % yielders, but I think it's very smart to
mix in
high dividend -
growth stocks as well even if the current yield is unsatisfying.
I especially like the organic
growth part of it, as it perfectly shows what can be accomplished if you choose a good
mix of
dividend growth and
high - yield stocks.