10-14-2018, 06:18 PM
I'm completely with you on the cash flow thing. It requires a modest amount of growth to maintain a dividend long term. I do believe the dividend definitely needs to grow or the strategy is a bust. Otherwise a simple S&P index fund will wildly outperform on any metric. Anyway, there is a reason young investors are advised to place some assets in growth stocks. Because it makes complete sense long term. There are a LOT of Aristocrat stocks I find completely unattractive short of a major correction.
Personally I prefer the middle ground. There are plenty of growing companies with a reasonable dividend. Most are way overpriced currently but that's another discussion. I own very few non-dividend paying stocks and I doubt that will ever change at this stage. Somebody who is 25 should not do that. I'm glad I did not rule out MSFT, INTC and CSCO way back then when they paid no dividend, or it was so small it was meaningless.
Personally I prefer the middle ground. There are plenty of growing companies with a reasonable dividend. Most are way overpriced currently but that's another discussion. I own very few non-dividend paying stocks and I doubt that will ever change at this stage. Somebody who is 25 should not do that. I'm glad I did not rule out MSFT, INTC and CSCO way back then when they paid no dividend, or it was so small it was meaningless.