A «10 % Trade» can be a great way to accelerate your income from a high - quality dividend growth stock with a
relatively low current yield.
Global bonds are vulnerable due to
low current yields, depressed term premia1 and the desire of developed - market central banks to unwind unconventional policies.
Others have
a lower current yield but they have a history of good dividend growth.
Intel Corp. has
the lowest current yield among the passing companies with its 0.6 % yield, well above its seven - year average high yield figure of 0.4 % (Table 2).
This puts it in stark contrast to, say, the Vanguard Dividend Appreciation ETF ($ VIG), which has
a low current yield but holds companies with a long history of raising their dividends.
Some fund managers even waive part of their operating fees (expense ratio) due to
low current yields.
Typically, the faster growing stocks will offer
a lower current yield but obviously a faster rate of compounding and, therefore, a greater potential for a higher total return.