Dividend Growth Portfolio Overtakes High-Yield Strategy by Year 10, Study Shows

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โดย Yahoo Finance·Read original
Summary · why it matters

A dividend growth portfolio starting with $45,000 in annual income and growing 8% per year overtakes a high-yield portfolio paying $90,000 but growing only 1% by year 10, according to a recent analysis. By year 30, the growth portfolio pays about $419,000 versus roughly $120,000 for the high-yield strategy, and after adjusting for inflation, the growth portfolio retains approximately $143,000 of today's purchasing power compared to about $31,000 for the high-yield portfolio. Companies such as AbbVie, Lowe's, and Procter & Gamble exemplify dividend growth, returning 460%, 244%, and 141% over ten years respectively while raising payouts annually. The analysis recommends investors model retirement income at different growth rates and reinvest dividends to maximize compounding.

Impact on stocks 5

Biotech & Genomic Medicine▲ · 2 stocks
AbbVie Inc
ABBV
▲ PositiveCapitalrelevance

Mentioned as an example of a dividend growth stock that returned 460% over ten years while raising payouts annually.

Consumer Staples▲ · 2 stocks
Procter & Gamble Company
PG
▲ PositiveCapitalrelevance

Mentioned as an example of a dividend growth stock that returned 141% over ten years while raising payouts annually.

Consumer Discretionary▲ · 1 stocks
Lowe's Companies Inc
LOW
▲ PositiveCapitalrelevance

Mentioned as an example of a dividend growth stock that returned 244% over ten years while raising payouts annually.

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