10 by 10: A New Way to Look at Dividend Yield and Growth [View article]
Dividend reinvestment is a good idea only if the underlying stock is your best buy at the time of the reinvestment -- it might or it might not be.
I love the 10 by 10 math, it's a great guide. But one must not forget that the company has to be able to cover the growing dividend from earnings and cash flow. Can the company grow at the required rate? Again, advantage to high dividend yield companies provided the dividend is well covered by earnings and cash flow.
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Dividend reinvestment is a good idea only if the underlying stock is your best buy at the time of the reinvestment -- it might or it might not be.
Jun 02 09:16 am
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All Comments by captainccs »10 by 10: A New Way to Look at Dividend Yield and Growth [View article]
I love the 10 by 10 math, it's a great guide. But one must not forget that the company has to be able to cover the growing dividend from earnings and cash flow. Can the company grow at the required rate? Again, advantage to high dividend yield companies provided the dividend is well covered by earnings and cash flow.