07-01-2016, 11:01 AM
(06-30-2016, 10:08 AM)EricL Wrote: For the most part I agree with your thoughts on shooting for the middle, but there are cases where double-digit growth can continue for a long time. ROST, TJX, CASY, TSCO, CHD, WBA, CVS are a few that immediately come to mind.
Half of those have less than 1% yield and the highest at 1.75% Give 15 yrs with 10% growth 1% becomes 3.79% while 1.75% becomes 6.65%
I'd rather start with 2.5% to 4% with 5% growth and after 15 yrs be 4.95% to 7.19%. The odds favor 5% growth to 10%.
My objective was Income growth when I was in the accumulation phase. Capital growth follows div growth and the low yield\high may have greater capital appreciation, assuming they can continue at those high rates and the capital grows at the same rate.