Dividends4Life: Promising and Fast-Growing Dividends

Promising and Fast-Growing Dividends

Posted by D4L | Tuesday, January 01, 2013 | | 1 comments »

As we look toward a new year with renewed determination to be better investors, we'd do well to include some solid dividend-paying stocks in our portfolios. Dividends from healthy, growing companies deliver to us, like mail carriers, in any kind of weather -- boom, bust, or stalled economy.

Don't be put off by lots of current yields below 3%. If a 2.8% dividend grows by even 10% annually, it will become 4.5% in just five years. It's fair to chase high yields, but some of them can take a long time to grow much more. The companies above have been boosting their payouts substantially in recent years. Such high rates can't last forever, but given fairly low payout ratios for most of the companies, they stand a good chance of continuing for more years. (A payout ratio reflects the portion of a company's earnings being paid out in dividends.)

Source: Daily Finance

Related Articles:
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
- A Roadmap To Build Wealth With Dividend Stocks
- The Good, The Bad and The Ugly of Dividend Stocks
- 12 Blue Chip Dividend Stocks For When the Chips Are Down

Click here to have future posts delivered to you for free!

________________________________________________________________

1 comments

  1. Brett Wilson // January 1, 2013 at 10:02 AM

    I liked your post. It is important the dividend growth is very important. A dividend grower is very important to a long term investor.

Post a Comment

Note: Only a member of this blog may post a comment.

~

Popular Posts Last 30 Days