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Dividend Growth Investing [THREAD]
Don’t forget about the GROWTH
Receiving dividends is great...
But losing capital sucks!
Sure, we all know that the stock market fluctuates. It goes
and 
If we knew how it was going to behave, we would all be rich
This is why choosing Dividend Stocks with growth potential is important
If you pick stocks that not only give you consistent dividends, but also appreciate in value over time...
Then you got a winner
If you pick stocks that not only give you consistent dividends, but also appreciate in value over time...
Then you got a winner
$GD (General Dynamics) is a good example:
Dividend Yield: 2.81%
Payout Ratio: 39.84%
5-year Growth Rate: 10.52%
All with 26 years of consecutive dividend raises
Current Price is ~$155.58
MorningStar gives it a fair value prices of $185
Dividend Yield: 2.81%
Payout Ratio: 39.84%
5-year Growth Rate: 10.52%
All with 26 years of consecutive dividend raises
Current Price is ~$155.58
MorningStar gives it a fair value prices of $185
Again,
Don’t fall for a Yield Trap
A nice yield is great, but know that an unusually high dividend yield usually means that the stock is underperforming
Don’t fall for a Yield Trap
A nice yield is great, but know that an unusually high dividend yield usually means that the stock is underperforming
Let’s make up a random stock $RAN
If a year ago, it was going for $125 and had a $5 annual dividend
That would give it a 4% dividend yield
————————————————
But today, the stock is only going for $80
So now the yield would be 6.25%
The yield looks nice, but it lost 36%
If a year ago, it was going for $125 and had a $5 annual dividend
That would give it a 4% dividend yield
————————————————
But today, the stock is only going for $80
So now the yield would be 6.25%
The yield looks nice, but it lost 36%
As with everything, please do your own research
