I’ve said it before, and I’ll say it again: yields aren’t everything, especially for long-term portfolios. Dividend growth investors will agree that with five to ten years of investment horizons and compounding dividends, you can experience significant returns with dividend-growth stocks.
When looking for companies that will likely grow their dividend— investors often flock to Dividend Aristocrats and Kings. However, many of those companies are mature and already expensive. Not only that, investors with “itchy fingers,” like me, often want to buy something “now,” regardless if the companies are expensive. Perhaps it’s because we just liquidated a position, or maybe it’s because we have cash we want invested now.
