03-20-2014, 09:27 PM
I've advocated the idea of "yield diversity" before, which sounds something like what rnsmth is talking about. A large enough dividend growth portfolio can have a nice mix of higher yield / lower growth stocks and lower yield / higher growth stocks.
That said, in choosing between two stocks, all else being equal, I tend to agree with your premise, Tom, that the higher initial yield is a "sure thing" that deserves some preference over dividend growth, which may or may not continue into the future in such a way as to compensate for the lower initial yield.
That said, in choosing between two stocks, all else being equal, I tend to agree with your premise, Tom, that the higher initial yield is a "sure thing" that deserves some preference over dividend growth, which may or may not continue into the future in such a way as to compensate for the lower initial yield.