Dividend Strategies For Younger Investors

The notion of a dividend growth strategy isn't something which should be considered the domain of only older investors. Younger investors can benefit from building up a steady, growing income stream over time which can allow for a nice income supplement, or even assistance with a significantly early retirement, if given enough time. Starting with stable, well established, consistent dividend growth payers should be part of the core of any investor's portfolio. Having these dividend payers in one's portfolio will help provide some income stability to the portfolio, as well as stock price stability.

Younger investors can benefit from holding the same large cap stocks that investors approaching retirement also hold. Stocks including McDonald's and The Coca-Cola Company are the bedrock of any dividend portfolio, with superior business models and long records of earnings and dividend increases. In addition, younger investors can also benefit from selectively holding strong companies with a smaller dividend yield but rapid dividend growth as well as companies that provide international exposure. This will help to further accelerate dividend income over the long term.

Source: Seeking Alpha

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