08-04-2013, 06:49 PM
I'm completely with you, Horace. T's dividend growth is paltry, but a 5 percent yield, even if barely growing, is nothing to sneeze at. You could buy JNJ today, and even if you generously assume 8 percent dividend growth for JNJ, and it would STILL be the year 2021 before your yield on cost on those JNJ shares reached the 5 percent mark that you can get from T today.
I've still got decades to go before retirement, so over those long time horizons, it might be better to emphasize dividend growth a little over initial yield. But only if you had to choose. I like having some of both in my portfolio!
I've still got decades to go before retirement, so over those long time horizons, it might be better to emphasize dividend growth a little over initial yield. But only if you had to choose. I like having some of both in my portfolio!