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dividend_growth_strategy [2021/02/05 12:33] tom |
dividend_growth_strategy [2022/02/24 20:07] tom |
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====== The Dividend Growth Strategy ====== | ====== The Dividend Growth Strategy ====== | ||
- | 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. Charles Ellis put it this way in a 1987 Forbes column: “You could invest the portfolio and get a 4% dividend return. That dividend could reasonably be expected to grow at 6% . . . the principal presumable would also appreciate at 6%.” In essence, this is what I do. (What’s Ellis’return? |
- | In 2000, CNR’s dividend was 12⊄. As I key this in February | + | |
+ | Here is one example. In 2000, CNR’s dividend was 12⊄. As I key this in February | ||
{{ 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, | {{ 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, |