BIPC - 4 Dividend Growth Stocks For A Powerful Passive Income Snowball
2024-06-21 07:05:00 ET
Summary
- Dividend growth is an extremely important component of building a passive income snowball.
- I share four stocks set to grow their dividends rapidly for years to come.
- Each of these stocks has a major macro tailwind that should combine with a strong business model to drive outsized dividend growth.
Anyone who's read my work for any period of time knows that I place a great deal of emphasis on current yield. There are several reasons for this. One is the saying, "A bird in the hand is worth two in the bush." In other words, an investment that can pay you cash today is more certain than one that you're hoping will be able to pay you twice as much down the line. This is because there are macroeconomic risks, execution risks, technological disruption risks, management risks, and competition risks that can get in the way of that growth potential materializing. As a result, a lot of bad things can happen between now and the future payoff date for a long-term growth-oriented investment that can get in the way of you and your targeted returns. In contrast, a company that pays a very dependable and attractive current yield is a much less risky compounding proposition, even if it may not offer the same degree of excitement as a growth investment does....
4 Dividend Growth Stocks For A Powerful Passive Income Snowball