Read? High Dividend Yield Stocks? - Part 8
High Yield Stocks
- Do you invest for income according to how much money you need?
- Do you invest because the yield is attractive?
- Do you like the cash flow coming from dividends and good for compounding in stock market?
Or you will seriously consider all three
- Yield
- Dividend growth
- Payout ratio
The stock price over long term is all about growth and the key component is dividend growth.
Without it, the dividend will lose its buying power due to inflation. So, we will need both dividend growth and capital appreciation to over-power the mighty inflation over the years.
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