Monday, March 14, 2011

10 Challengers in the Dividend Sweet Spot

The Dividend Pig submits:

A dividend yield of 2-5% is often considered the "sweet spot" of dividend growth investing. It is within these boundaries that the right combination of dividend growth and yield is found; the magic mix that will lead to substantial accumulation of wealth over time.

Here, many of the world's top dividend paying companies live. Names like Coca-Cola (KO), Johnson & Johnson (JNJ), Procter & Gamble (PG), and McDonald's (MCD) all consistently maintain yields between 2-5%. This yield window helps protect the stock price from large dips, as too low a price would send the yield through the roof, and the stock would get snatched up by smart investors. If, for example, KO was ever yielding 6-8%, I'm pretty sure Warren Buffett would buy the whole company.

The object is to get into these businesses early, so as to be one of the blessed shareholders who will experience 25+ years of

Complete Story »

Taylor Swift Milla Jovovich Maggie Grace

No comments:

Post a Comment