Plain Dividend Yield Is for Chumps

Posted by D4L | Sunday, January 20, 2013 | | 0 comments »

A contributor on Y-Charts has recently begun a series of articles, whose title I love, decrying “plain dividend yield” in favor of examining a company’s dividend growth rate, or DGR. She is also only including Dividend Aristocrats, those companies that have been paying and raising their dividends for at least 25 years. I agree 100%. But I think that those three criteria alone are not nearly sufficient to ensure that you are buying the best of the best among dividend-paying companies.

I have found this evaluation of the Y-Charts list to be a valuable exercise, as many of these are companies that I have not already examined, and I will cover the next five companies on their list in a separate article. In conclusion, while I would not add any of these companies to my own Dividend Portfolio at this point, I will definitely keep Walgreen and Target on my screening list, and watch for them to either hike their dividends or for their price to drop enough to bring them into the 3% yield range.

Source: Motley Fool

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