Some of you are familiar with the 10 x 10 concept. It is a table that answers the question, “What beginning yield and what dividend growth rate do I need to achieve a 10% yield on cost within 10 years?” A recent article on it can be found here: “10 by 10: The Interaction of Dividend Yield and Growth.” Obviously, various combinations of yield and DGR can achieve the 10 x 10 goal. The table lets you select a dividend and a growth rate. Where they intersect, it tells you the year in which they will achieve a 10% yield on cost.
It is unfortunate that dividend-growth investors have in some corners been labeled as interested only in yields and historical growth rates while being blind to other factors that go into complete stock analysis and due diligence. So let me emphasize that while this table is focused on those two factors, there are many other elements involved in evaluating dividend-growth stocks. The table is only one element in creating a complete analytical picture. I use about 20 factors to rate each company and then another 9 to value each candidate. The dividend-growth strategy is about much more than yields and growth rates. It’s not brain surgery, but when done right it is a thorough process. So the usual boilerplate applies: Do your own due diligence before investing in anything.
Source: Seeking Alpha
Related Articles:
- What's More Powerful Than Compound Interest?
- Are There Cracks in Your Foundation?
- My Five Top And Bottom Performing Dividend Stocks
- 7 Dividend Stocks To Build Your Future Security
- How To Know When To Sell A Dividend Stock
- 7 Dividend Stocks Delivering The Secret To Successful Investing
Dividend Growth Stocks News
- Top ASX Dividend Stocks To Watch In May 2025 - Yahoo Finance - 5/15/2025
- 3 Top Dividend Stocks to Maximize Your Retirement Income - Nasdaq - 5/15/2025
- 3 Stocks Hiking Dividends Worth Buying - 24/7 Wall St. - 5/15/2025
- Rebecca Teltscher's Market Outlook: Canadian Dividend Stocks - BNN Bloomberg - 5/15/2025
- Isabella Bank And 2 Other Top Dividend Stocks To Consider - Yahoo Finance - 5/15/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
- General Dynamics (GD) Dividend Stock Analysis - 4/11/2025
Using The 10 x 10 Table To 'Score' Dividend Yields
Posted by D4L | Wednesday, November 23, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.