08-19-2014, 11:00 PM
(08-19-2014, 07:32 PM)hendi_alex Wrote: Ten percent YOC in then years? From what initial yield? Given what level of inflation expectation? that would be a pretty lofty goal starting from 2% for example. Probably would take an average growth rate of about 18%.
Here are a few articles from David Van Knapp, this is where I got the idea from.
10 By 15: What Happens With Low-Yield High-DGR Stocks
10 by 10: The Interaction of Dividend Yield and Growth
10 by 10: A New Way to Look at Dividend Yield and Growth
I reinvest all of my dividends as they are received, so 10% YOC is achievable on some stocks with as low as 2% initial yields. Obviously, the higher the initial yield, the easier it is to achieve, but with a fast growing lower yielder, its still possible.