I came out high — and that was even with a very conservative
look at future dividend growth.
Not exact matches
And after merging with Spectra, Enbridge came out and stated that it expects to grow its
dividend at an annual clip of between 10 % and 12 % through 2024, so it
looks like this incredible combination of yield and
dividend growth is set to continue for the foreseeable
future.
If you
look only
at the 5 years
dividend growth rate without considering the trend, you might expect a
future dividend growth of 8 % (which would correspond to the 5 year annualized growth rate) while the reality is that you will likely be getting a 3 - 4 % growth.
But a
look at a company's retained earnings can help us get a handle on what kind of
dividend growth to expect going forward into the
future.
At the very least, using the Valuentum Dividend Cushion ™ ratio can help you avoid stocks that are at risk of cutting their dividends in the future, and we are the only investment research firm out there that does this type of in - depth, forward - looking cash - flow analysis for yo
At the very least, using the Valuentum
Dividend Cushion ™ ratio can help you avoid stocks that are
at risk of cutting their dividends in the future, and we are the only investment research firm out there that does this type of in - depth, forward - looking cash - flow analysis for yo
at risk of cutting their
dividends in the
future, and we are the only investment research firm out there that does this type of in - depth, forward -
looking cash - flow analysis for you.
• The money stays in the same sector (real estate) • I move some money from being seriously overvalued to being nicely undervalued • The yield on that money moves up from 3.8 % to 5.3 % • I may be
looking at faster
dividend growth (although the
future is never guaranteed) • I am reducing risk from being so concentrated in Realty Income • I may be adding a little risk by going down a bit in company quality
This is especially true for
Dividend Stocks when
looking at their historic performance and expectations for the
future.
Investing for
dividends is one type of investment strategy, and it can be contrasted with value investing, in which we
look at the
future prospects of a company rather than its current
dividend.
I'm
looking forward to earning more US
dividend income in the
future; we like traveling to the US and likely always will so I think it would be convenient to get monthly
dividends in USD as it avoids having to convert
at the right time or worry about avoiding travel if the exchange rate is bad.
Keeping in mind that past performance, as the disclaimer goes, isn't indicative of
future performance, a
look at the numbers shows that you could have done well with a number of smaller
dividend ETFs.
Best Buy would not appear to be
at risk of failure in the immediate
future, but investors searching for steady
dividend growth should
look elsewhere.
But even if they fall short, and the
future looks a lot like the last 10 years, there's room for
at least mid-single-digit
dividend growth, as the payout ratio allows for it.
In order to really build that
future dividend growth expectation, though, we must
look at what kind of underlying business growth the company is generating.
You can
look back to the beginning and see him
at a point where he had no money in his portfolio, no
dividend income coming in, and no way of knowing what the
future was going to hold or whether he was going to succeed with his investing or lose it all.
Look for companies that generate plenty of steady cash flow and have a moderate
dividend, but are also good
at re-investing the rest of their cash flow to create the growth that drives
future dividend increases.
If you
look only
at the 5 years
dividend growth rate without considering the trend, you might expect a
future dividend growth of 8 % (which would correspond to the 5 year annualized growth rate) while the reality is that you will likely be getting a 3 - 4 % growth.
With only a 2.6 %
dividend yield and
dividend growth no where in sight, I will
look to exit my position in
future months
at a more attractive price.
By
looking at the past results of a company you can begin to get a reasonable feel for whether it is a high quality company, more likely to keep paying a growing
dividend in the
future, or perhaps a company of slightly lesser quality.
Below, we'll
look more closely
at the history of
dividends that the Vanguard
Dividend Appreciation ETF has paid to its investors and whether the upward trend is likely to continue into the
future.