Hello Everyone!
I had an idea I wanted to discuss.
In terms of yield vs growth, since I am 22 years old and have a large amount of "time in the market" potential, should I primarily be focused in on the lower yield (Lower than %3) higher dividend growth companies?
Lets take for example WPC or AT&T. These companies have high initial yields but have less than ideal growth. AT&T has an initial yield currently at 5.6% but with an average yearly dividend growth of 4.2% over the past 19 years.
Versus, for example, Parker Hannifin, with an initial yield of 2.5% but a average yearly dividend growth of 10% over the past 19 years.
These questions are highly situational and depend on the investors goal. I am 22 years old and my goal is to be financial independent by 45. This leaves me with 23 years to realize my goal.
What would you guys reckon is a good ratio between growth and yield for youth investors? Is it unwise for investors with much more time to invest in higher yield/low dividend growth stocks?
I had an idea I wanted to discuss.
In terms of yield vs growth, since I am 22 years old and have a large amount of "time in the market" potential, should I primarily be focused in on the lower yield (Lower than %3) higher dividend growth companies?
Lets take for example WPC or AT&T. These companies have high initial yields but have less than ideal growth. AT&T has an initial yield currently at 5.6% but with an average yearly dividend growth of 4.2% over the past 19 years.
Versus, for example, Parker Hannifin, with an initial yield of 2.5% but a average yearly dividend growth of 10% over the past 19 years.
These questions are highly situational and depend on the investors goal. I am 22 years old and my goal is to be financial independent by 45. This leaves me with 23 years to realize my goal.
What would you guys reckon is a good ratio between growth and yield for youth investors? Is it unwise for investors with much more time to invest in higher yield/low dividend growth stocks?