Dividends4Life: High Yield Vs. Dividend Growth

High Yield Vs. Dividend Growth

Posted by D4L | Saturday, October 12, 2013 | | 0 comments »

I decided to compare and contrast high yield no growth, low yield good growth, and very low yield fast growth stock portfolios. I hold Dividend Growth stocks as well as riskier high yield stocks in my portfolio. I try to diversify among industry, yield, growth, etc. I am overweight in certain areas but like to have at least one bite of each cookie. I have the allocation specifically to hit a certain portfolio yield.

There are reasons for a high yield portfolio and for a dividend growth portfolio depending on your investing style, perceived risks going forward, time from retirement, life expectancy, risk acceptance level and many factors. With my personal investing style and my desire to retire in the next five to ten years but also to have longer term growth potential for a little later in retirement I've decided I like the hybrid approach. With this approach I'm able to enjoy a slightly higher level of income sooner (to meet the early retirement goal) but also have longer, later in life income growth potential (with the dividend growth stocks). I'm willing to accept a larger risk with this portfolio over a strict dividend growth portfolio.

Source: Seeking Alpha

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