Since I started writing about dividend growth investing, many investors question my choice of adding low yielding dividend stocks to my portfolio. They keep asking “Your dividend yield is too low, why do you pick a 2% dividend yield stock when you can buy shares of companies offering over 5% in yield?” The answer is, it all depends on your investing strategy.
The Growth Addition part of my portfolio has companies that do not meet all of my metrics, but show great upside potential.These shares are meant to be part of my holdings for a shorter period ranging from six months to three years. The goal is to seize an opportunity and cash in the profit quickly. This is when low yield dividend stocks should not be ignored. I currently hold a few low yield dividend stocks in my portfolio: Walt Disney Co (DIS) pays a 1.46% yield, Apple Inc (AAPL) pays 1.87% yield and Canadian National Railway (USA) (CNI) pays 1.82% yield.
Source: InvestorPlace
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Posted by D4L | Monday, May 09, 2016 | ArticleLinks | 0 comments »________________________________________________________________
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