Not exact matches
The disadvantage is that since the
dividend growth rate already takes into account company
growth and share repurchases, the
growth rate will be fairly
high,
so we'll have to use a fairly
high discount rate, and
so it's very sensitive to the inputs.
I wouldn't focus
so much on the low current yield of these companies as much as their very
high dividend growth rates.
These nearly zero interest rates is what drove many U.S. and European fixed income investors towards
higher income opportunities in their own home countries —
so, they bought more equities, REITs and
dividend growth stocks over the last 5 years, driving up valuations (though the February correction has brought back some sanity.)
What's often forgotten is that one usually comes at the expense of the other: bonds with
higher coupons can bring a capital loss, stocks with
higher dividends may experience slower
growth, and
so on.
Dividend growth investing is largely about buying and holding
high quality companies,
so I exercise great care in deciding what to buy.
The ten - year
dividend growth rate stands at 10.9 %,
so you're getting a very
high DGR on a very
high yield.
I started off by investing in stocks with
higher yields
so as to get the snowball rolling a bit, but have opened up my portfolio to a few stocks with fairly low entry yields, but
higher growth rates, which could propel my
dividend income many decades from now.
So been buying lower yielding,
higher dividend growth stocks.
That is to say, I'll likely invest a few hundred dollars or
so in
high - quality
dividend growth stocks trading at attractive valuations.
The reason I've gone public with many of my real - life, real - money «10 % Trades» is
so you can see for yourself how entirely possible it is to boost your annualized yield on
high - quality
dividend growth stocks.
So called
high dividend stocks are usually from companies that have stable cash flows but relatively little or moderate
growth potential.
For any given earnings $ $, the
higher the
dividend yield, the lower the necessary
growth for a valid investment,
so the
higher the acceptable PEG.
The reason I've gone public with many of my real - life, real - money «
High - Yield Trades» is so you can see for yourself how entirely possible it is to boost your annualized yield on high - quality dividend growth sto
High - Yield Trades» is
so you can see for yourself how entirely possible it is to boost your annualized yield on
high - quality dividend growth sto
high - quality
dividend growth stocks.
So AT&T falls neatly into a certain category of
dividend growth stock:
high yield, slow
growth.
They identify the point where the lines of the two choices cross and conclude something like «Over 20 years you receive more $ $ from
high dividend -
growth stocks than from
high - yield
dividend stocks,
so it is better to buy
high dividend -
growth stocks.»
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.
In short, you want to put your money to work for you in
high - quality
dividend growth stocks for their safety and growing
dividend stream... but their current yields are
so suppressed today that you'd potentially have to wait a whole decade before being able to capture a double - digit yield - on - cost.
So Starbucks»
higher growth does eventually win out in both
dividends per year (Year 10) and cumulative
dividends (Year 15).
Dividend Growth Investing is a great strategy if you have the capital and / or sufficient time (10 + years), but I have neither
so high yielding ETF / CEF stocks were the best way for me.
And
so the money I was saving all these years was being invested in
high - quality
dividend growth stocks (which I'll go over in the next chapter).
In general, although volatility can change on any asset (i.e., TLT is a good example), fixed income assets are less risky than
higher - yielding income; large cap
dividend stocks are not as risky / volatile as large cap
growth or small caps, which are not as risky as foreign and emerging equity and
so forth.
I am picking up more traditional
dividend growth positions in my regular accounts,
so leveraging the
higher valued and
higher growth positions in Loyal3 is a great complement to that.
So by buying a
high quality
dividend paying company, the return was 7.9 % from
dividends, and 33.4 % from the
growth of the business.
for you would a stock like duke energy (DUK) not be attractive to you because of its payout % being
so high 116 % even thou it is a very stable
growth company 10 years
dividend growth!