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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