Money and Finance
I like to try and target a 10% YOC in 10 years based on the previous 10-year annual dividend growth rate. For reference I've created some tables to show the required current dividends based off different dividend growth rates. I've cut the dividend growth rate off at 3% since the long term annual inflation rate is around 2.5% and I want my income to at least be slightly ahead of inflation.
Due to the recent runup in the overall stock market there's very few consistent dividend payers that come close to meeting the stict 10% YOC in 10 years, but if you are early in your investment horizon you could use the 10% YOC in 12 or 15 years tables as another step in the filtering process of searching for dividend growth stocks.
- Dividend Update - July 2012
July wasn't the best of months for dividends with only 2 stocks in my brokerage account and 1 stock in my Roth IRA making payouts. July did bring 1 new position, Emerson, and 1 addition to a current position, in McDonalds. The two purchases will add...
- Dividend Increase
On Monday, Intel (INTC) announced a 7.14% increase in their quarterly dividend to $0.225 starting with the dividend payable in the 3rd quarter of 2012. The previous quarterly rate was $0.21. .nobrtable br { display: none } tr.alt td {background-color:...
- Dividend Increase
On Friday, Procter & Gamble (PG) announced a 7.05% increase in their quarterly dividend to $0.565. The previous quarterly rate was $0.525. .nobrtable br { display: none } tr.alt td {background-color: #ffffff; color: black;} caption {caption-side:bottom;}...
- Dividend Increases
I know these are a little old news but they happened over last week while I was distracted with getting to spend time with Lynsy. It was a nice break to get to take a week off from checking through financial information on different companies. Wells...
- Payback Period
Another good thing to look at is the payback period which is how long it will take for the total dividends you've received to surpass the original investment amount. For the purposes of this exercise I've assumed a $5,000 initial investment. The...
Money and Finance
Targeting a 10% YOC
I like to try and target a 10% YOC in 10 years based on the previous 10-year annual dividend growth rate. For reference I've created some tables to show the required current dividends based off different dividend growth rates. I've cut the dividend growth rate off at 3% since the long term annual inflation rate is around 2.5% and I want my income to at least be slightly ahead of inflation.
| 10-yr Dividend Growth Rate (per year) | Current Dividend |
|---|---|
| 15% | 2.47% |
| 13% | 2.95% |
| 10% | 3.86% |
| 9% | 4.22% |
| 8% | 4.63% |
| 7% | 5.08% |
| 6% | 5.58% |
| 5% | 6.14% |
| 4% | 6.76% |
| 3% | 7.44% |
| 10-yr Dividend Growth Rate (per year) | Current Dividend |
|---|---|
| 15% | 1.87% |
| 13% | 2.31% |
| 10% | 3.19% |
| 9% | 3.56% |
| 8% | 3.97% |
| 7% | 4.44% |
| 6% | 4.97% |
| 5% | 5.57% |
| 4% | 6.25% |
| 3% | 7.01% |
| 10-yr Dividend Growth Rate (per year) | Current Dividend |
|---|---|
| 15% | 1.23% |
| 13% | 1.60% |
| 10% | 2.39% |
| 9% | 2.75% |
| 8% | 3.15% |
| 7% | 3.62% |
| 6% | 4.17% |
| 5% | 4.81% |
| 4% | 5.55% |
| 3% | 6.42% |
Due to the recent runup in the overall stock market there's very few consistent dividend payers that come close to meeting the stict 10% YOC in 10 years, but if you are early in your investment horizon you could use the 10% YOC in 12 or 15 years tables as another step in the filtering process of searching for dividend growth stocks.
- Dividend Update - July 2012
July wasn't the best of months for dividends with only 2 stocks in my brokerage account and 1 stock in my Roth IRA making payouts. July did bring 1 new position, Emerson, and 1 addition to a current position, in McDonalds. The two purchases will add...
- Dividend Increase
On Monday, Intel (INTC) announced a 7.14% increase in their quarterly dividend to $0.225 starting with the dividend payable in the 3rd quarter of 2012. The previous quarterly rate was $0.21. .nobrtable br { display: none } tr.alt td {background-color:...
- Dividend Increase
On Friday, Procter & Gamble (PG) announced a 7.05% increase in their quarterly dividend to $0.565. The previous quarterly rate was $0.525. .nobrtable br { display: none } tr.alt td {background-color: #ffffff; color: black;} caption {caption-side:bottom;}...
- Dividend Increases
I know these are a little old news but they happened over last week while I was distracted with getting to spend time with Lynsy. It was a nice break to get to take a week off from checking through financial information on different companies. Wells...
- Payback Period
Another good thing to look at is the payback period which is how long it will take for the total dividends you've received to surpass the original investment amount. For the purposes of this exercise I've assumed a $5,000 initial investment. The...