V - Here Are 3 Exceptional Dividend Compounders To Supercharge Your Portfolio

2024-01-27 03:34:33 ET

Summary

• Investing in companies without dividend distribution and capitalizing on compound interest is advantageous due to tax benefits.
• However, some investors, myself included, prefer companies that pay dividends for the sake of short-term gains and a sense of stability during downturns.
• The mix I generally seek involves a low starting dividend yield, coupled with robust EPS growth and a double-digit DGR, aiming to compound capital appreciation and dividends.
• Today, I am presenting to you three stocks, all of which I own, that meet these criteria and have the power to supercharge your portfolio.

Investors who pick stocks often face the dilemma of which investment strategy to choose and how to leverage compounding to amplify the growth of their hard-earned money, all while minimizing risks.

The optimal choice varies significantly among investors based on factors like age, investment goals, and risk tolerance.

Generally, younger investors tend to be more aggressive, opting for either no-dividend paying stocks or lower-yielding stocks to harness the compounding effect.

As investors age and approach retirement, the shift typically moves toward higher-yielding stocks to fund their golden years....

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