Dividend Growth and Dividend Yield Strategies

Dividend growth and dividend yield-focused investing approaches, two of the most popular, are not actually separate strategies, according to a recent article in Barron’s. Dividend growth, the article explains, focuses on companies with the ability to grow payouts over time (notwithstanding the relative appeal of the current yield), while a dividend yield strategy targets currently high-yielding stocks with less emphasis on future payout growth potential. The article argues that the approaches of various asset managers supports that a combination of the two is the best approach for investors, and offers examples of relative fund performance: It also cites comments from […]