Dividend Growth Stocks for Every Type of Investor

In a recent article by SA Contributor Low Sweat Investing, the author, who deservedly earned an Editor's Pick and garnered at least 242 comments, discussed the relatively friendly “feud” between “high-yield fans and dividend-growth lovers.” He went on to report some surprising findings that seem to favor the high-yield fans...up to a point.

Comparing a static 6% yield with dividend reinvested to a 3% yielder with a dividend growing at 7.5%, he found that it would take until Year 13 for the latter to catch up in terms of current income and until Year 19 before the dividend growth stock pulls even in terms of cumulative dividends received. Of course, the dividend growth lover often counters that his or her stock is more likely to enjoy capital appreciation, so it would provide better total returns over time.

Source: Seeking Alpha

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