A dividend yield of 2-5% is often considered the “sweet spot” of dividend growth investing. It is within these boundaries that the right combination of dividend growth and yield is found; the magic mix that will lead to substantial accumulation of wealth over time.
The Dividend Pig
I'm a dividend growth investor who is aiming to retire early in 5 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!
3 Comments
Good article. However rather than the yield number and just the growth rate it would be good to look at earnings, PE amost other factors as well.
just landed to ur site.
Great point Inq, and welcome to the site, I’m glad to have you. These are just highlights, and by no means recommendations. A company can raise dividends for years, but if they payout ratio is >100% there is a good chance it will be cut. Stocks need to be assessed on numerous metrics, not just yield or dividend growth.
yep, definitely.