08-15-2014, 12:30 PM
(08-15-2014, 12:20 PM)Turvok Wrote: I've been thinking of selling my AT&T shares. The dividend is great, but the DGR is below that of inflation. I think you can hold it for about a year or so until inflation picks back up, but I would look into something with higher than a 2.5% DGR.
It's a good point, Turvok, thanks. Personally, I've been leaning lately towards giving more weight to initial yield than to DGR. A low starting yield can take decades to catch up, even with a projected and sustained high DGR. At any rate, I like to have some of each in my portfolio (what I like to call "yield diversity). So as long as I buy some higher DGR names also, I am happy to increase my exposure to a high (but stable) yielder like T, even if the DGR is going to be sluggish.