Dividend Growth Investing
Subscribe to the model portfolio, and create a safe, growing income stream with your investments. Beat inflation, and preserve your purchasing power. Do it with low risk. The goal of the portfolio is to create rising incomes at the compounded rates of 8% to 10% growth in income each year.
There are two important characteristics of the approach to Dividend Growth Investing (DGI) represented in the portfolios constructed here.
First, the goal is to have the income grow at the rate of 2 ½ to 3 times the current rate of inflation.
Second, the income should be very stable, consistent, reliable and the growth in income should have very low risk.
Of all of the income producing products available to individual investors, only a few of them have the chance of high rates of growth in their payouts over time. These are real estate investment trusts (REITs), master limited partnership (MLPs), and dividend paying companies.
Of these three, it is very difficult to predict the future growth of payouts from individual MLPs and REITs, although many advisors and analysts are trying their best. For individual companies, it is much easier to predict dividend growth rates from historical data on payouts rates, financial health, management commitment to the dividend, etc. McDonalds, Johnson & Johnson, P&G, and Coca-Cola are among those companies with financial metrics that reliably predict dividend growth rates of close to three times the rate of inflation. The trick is to find a group of such companies from around the world.
The Dividend Growth Portfolio is a group of companies that most closely resemble those listed above and are the companies that are most likely to increase their dividends at compounded rates of 8% - 10% for years into the future. You can own a diversified set of large, stable, global companies with dividend growth close to three times the rate of inflation.
Subscribe to the Dividend Growth Model Portfolio and Newsletter, create your own income portfolio that will grow every year, and enjoy a safe, reliable growing income stream from dividends.