DivGro is now DivGro 2.0!

DivGro moved to another platform and is now DivGro 2.0!

Please enjoy complimentary access to all the content on DivGro 2.0 until I formally launch it! You can sign up for free and join more than 1,125 existing members!

All content will be complimentary until the formal launch of DivGro 2.0. This includes my monthly newsletter and articles like
 How to Assess Dividend Quality and The Chowder Ruleand a live spreadsheet of my DivGro Portfolio.

Read more About DivGro 2.0 ...

Monday, March 4, 2024

Why Invest in Low Dividend Yield Stocks?

As a Dividend Growth Investor, I almost exclusively invest in dividend growth stocks with dividend increase streaks of five years or more. Dividend Radar is a free, weekly auto-generated spreadsheet of such stocks.

I believe in a healthy mix of higher-yielding (HiY) stocks and stocks with higher dividend growth rates (HiG stocks) as measured by the 5-year dividend compound annual growth rate, or 5-year DGR for short.

In the past few years, my DivGro portfolio's balance of HiY and HiG positions has shifted towards HiY stocks. To restore a healthier mix of HiY and HiG stocks, I recently closed several HiY positions and increased my investments in HiG stocks with lower yields. As a result, my annual dividend income decreased significantly, but I believe my total return prospects have vastly improved.

Please read this article at TalkMarkets to learn why I think investing in low dividend yield but high dividend growth rate stocks is a good idea! 



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