Just because a company pays a dividend, grows its dividend regularly or is even a Dividend Aristocrat, does not mean it is going to give you the returns you need for retirement. That’s because inflation is not just 3%. It is actually closer to 10%. This is one of the dirty little secrets that your broker and the investing business don’t want you to know. It is the fundamental reason why I created The Liberty Portfolio — to inform investors that they are not properly invested. You need to generate real returns of 10% annually to retain your purchasing power. So buying a “safe dividend” stock that pays 3% isn’t enough. That dividend growth also needs to be growing at a rate that brings your total annual return to 10%.
The first dividend aristocrat to buy that will deliver those 10% annualized returns is Aflac Incorporated (NYSE:AFL). VF Corp (NYSE:VFC) is not a company that sounds interesting or, for that matter, a company that most investors have even heard of. If you pay attention to people you meet at everyday jobs, like janitors or firemen or other types of homogenous workers, you’ll find the products of Cintas Corporation (NASDAQ:CTAS).
Source: InvestorPlace
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3 Unknown Dividend Aristocrats Returning 10%+ Annually
Posted by D4L | Saturday, December 16, 2017 | ArticleLinks | 0 comments »________________________________________________________________
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