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Yield vs Growth for Youth
#2
I'm 27 and I've settled for around a 50/50 mix of both low yield/high growth and high yield/low growth. My portfolio's current average yield is ~3.4%. The lowest yielder is ~2.3% and the highest yielder is ~7%. I generally don't look at companies yielding below 2.25-2.5%. I've generally found the Chowder Rule (Yield + Growth >= 12%) to be a good rule of thumb.

You should try plugging in different scenarios into one of the free DGI calculators on the internet. With the numbers you gave for PH vs T, it will take ~20 years for PH to reach an equivalent dividend income as T.

One thing you should keep in mind with the low yield/high growth companies is: Will they be able to grow their dividend at this pace for 20+ years?
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Messages In This Thread
Yield vs Growth for Youth - by notexactly - 10-19-2015, 03:16 PM
RE: Yield vs Growth for Youth - by Caversham - 10-19-2015, 06:45 PM
RE: Yield vs Growth for Youth - by Dividendsrule - 10-19-2015, 10:34 PM
RE: Yield vs Growth for Youth - by notexactly - 10-20-2015, 12:37 AM
RE: Yield vs Growth for Youth - by rapidacid - 10-20-2015, 06:16 AM
RE: Yield vs Growth for Youth - by notexactly - 10-20-2015, 03:04 PM
RE: Yield vs Growth for Youth - by Dividendsrule - 10-20-2015, 12:13 PM
RE: Yield vs Growth for Youth - by notexactly - 10-22-2015, 07:16 PM
RE: Yield vs Growth for Youth - by EricL - 10-22-2015, 11:01 AM
RE: Yield vs Growth for Youth - by notexactly - 10-22-2015, 03:35 PM
RE: Yield vs Growth for Youth - by Kerim - 10-23-2015, 09:38 AM
RE: Yield vs Growth for Youth - by Roadmap2Retire - 10-23-2015, 09:54 AM



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