Dividends4Life: It's Not Just About Yield

It's Not Just About Yield

Posted by D4L | Thursday, April 19, 2012 | | 0 comments »

You’ve probably heard the killer dividend pitch plenty of late: “Hey, you can get a higher yield on quality blue chips than on the 10-year Treasury.” In fact, classic dividend-payers such as utilities and telecoms have yields double the 1.99 percent payout on the Treasury note.

Getting all wide-eyed over a stock’s dividend yield, however, misses the bigger picture. “What you are getting paid today in a dividend is not what’s important,” notes George Fraise, manager of the $2.7 trillion Sustainable Growth Advisers, sub-adviser for the John Hancock U.S. Global Leaders fund. “The key to dividend investing is to focus on companies that will be able to grow that dividend payout over time.”

Source: Business Week

Related Articles:
- 12 Blue Chip Dividend Stocks For When the Chips Are Down
- Spanning the World For The Best Dividend Stocks
- 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

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



Post a Comment

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


Popular Posts Last 30 Days