Science Project...

[Ok Red]

I have a small Roth account that I decided to use for a science project. It's not even 8% of the value of my main IRA, and I will most likely not utilize it until I have retired for some time, so it have a little extra time to grow. The construct? I purchased the 8 stocks with the highest 5 year DGR that I own in my main IRA. This account is now fully invested, almost no cash. The average Dividend Yield is 2.4% and the average 5 year DGR is 33.75%. The eight are:

acn
arg
chd
cmi
coh
pm
unp
wag

Note that coh does not have a 5 year DGR yet - I used the 3 year instead, figuring it would be close enough.

Once some time has passed - perhaps a year or so - I will be interested to see how this port does compared to my more diversified larger port.

[Horace Cugle]

I like it, been doing something similar with CAT, LMT, PSX, TGT, WAG and WMT. Not as high DGR as you but in the 15%-20% range. It makes sense if you have time and don't need the income now.

[Kerim]

Interesting idea. You guys are really forcing me to consider whether I am properly weighing current yield versus dividend growth. Thanks!

[Horace Cugle]

You should definitely consider if you're where you want to be on Yield/Dividend Growth curve. Get the right amounts of each depending on your situation and tolerance for risk.