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Dividend investors often set minimum requirements for an “acceptable‿ initial dividend yield and/or dividend growth rate when they are considering buying a dividend stock.
Thus one investor might say, “I won’t invest in a dividend stock with a starting yield less than 3%. Another might say, “I want a minimum 10% per year dividend increase.
The goal, of course, is to purchase stocks whose yields and dividend growth rates are high enough to make them better bets than safer fixed-income investments like money market accounts, certificates of deposit, and bonds.
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Thus one investor might say, “I won’t invest in a dividend stock with a starting yield less than 3%. Another might say, “I want a minimum 10% per year dividend increase.
The goal, of course, is to purchase stocks whose yields and dividend growth rates are high enough to make them better bets than safer fixed-income investments like money market accounts, certificates of deposit, and bonds.
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Spam? Topple this!
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