10-02-2013, 08:31 AM
One thing that a person needs to consider is that with those 10-20 year's worth of 6% dividends, lots of shares of faster dividend growing stocks can be purchased. IMO a few cash cows (high yield but slower growing) in the portfolio provide a great cash flow that can be used for timely purchases of bargains as they appear. Sometimes fresh funding is hard to come by, but the cash cows will continue to give a steady stream of investment cash. A person may not want to be too overweight in higher yielding, slower growing stocks, not in a dividend growth portfolio, but 20%-30% weighting could aid in the overall objective of building a high growth portfolio. That is especially true during deep market contractions, when the dividends can buy 2X or more shares per investment dollar as compared to buying during an up market.
Alex