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dividend_growth_strategy [2021/02/05 12:26]
tom
dividend_growth_strategy [2021/02/05 12:33] (current)
tom
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 It’s the future cash flow dividend growth investors are interested in. We want our cash flow to be sound and growing. And we have discovered that as the dividend grows, the price grows also. Here is one example.  It’s the future cash flow dividend growth investors are interested in. We want our cash flow to be sound and growing. And we have discovered that as the dividend grows, the price grows also. Here is one example. 
-In 2000, CNR’s dividend was 12⊄. As I key this in February 2012, CNR’s dividend is $2.31 per share. That’s up 15.9% a year over twenty years. On our original investment we are now receiving 20%. Does you retirement income grow like this? And this 20% is without counting capital gains. CNR’s price grew also, from $12 in 2001 to $143 in early 2021. The CAGR on price is 13.2% a year. It’s a double-double: as our income grew,  so did our capital. We prepared a spread sheet showing year-by-year data like this on 25 companies over the last two decades.+In 2000, CNR’s dividend was 12⊄. As I key this in February 2021, CNR’s dividend is $2.31 per share. That’s up 15.9% a year over twenty years. On our original investmentwe are now receiving 20%. Does your retirement income grow like this? And this 20% is without counting capital gains. CNR’s price grew also, from $12 in 2001 to $143 in early 2021. The CAGR on price is 13.2% a year. It’s a double-double: as our income grew, so did our capital. A company that provides increasing cash flow becomes more valuable. We prepared a spread sheet showing year-by-year data like this on 25 companies over the last two decades. And we listed the stocks in growing yield order, showing the price increases also.
  
 {{ logo.png|Logo}}When they are at least fairly priced, I purchase certain common stocks with a long record of dividend growth and hold them for years, waiting for the dividend and the yield to grow. In the long run, yield provides most of the return. I also use yield, mainly, to determine value. A stock with a low yield and high dividend growth, for instance Alimentation Couche-Tard, is expensive. {{ logo.png|Logo}}When they are at least fairly priced, I purchase certain common stocks with a long record of dividend growth and hold them for years, waiting for the dividend and the yield to grow. In the long run, yield provides most of the return. I also use yield, mainly, to determine value. A stock with a low yield and high dividend growth, for instance Alimentation Couche-Tard, is expensive.
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