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Originally Posted by AU Doc
I've been heavily invested in growth stocks, which has worked well for me, but I'm beginning to want something more conservative. Dividend stocks are another avenue I've been considering.
Wat do you consider a good dividend yield? 4%, 5%? I know it depends on how the stock price is moving, but in general I'm wondering where you set the lower bar.
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When you finally find the time to read this thread --- you'll see a common theme discussed.
If you're going to accept a lower dividend - then there has to be growth with it - and you can take a higher dividend % - without as much growth. It's called TOTAL RETURN.... which is what is most important in investing.
The total return you get on your money. Many times that's some combination of dividend and growth. I ALWAYS ALWAYS ALWAYS check the total return on a stock for a number of years (backwards) before investing. I'm looking for a 100% total return in something under 10 years and preferably in 5...
I want a blended return in cash flow (dividend) of at least 5%..... the growth is on top of that. Sometimes that growth is slower - or backwards or awesome -- but I count on the DIVIDEND to carry the investments when the market has gone south.