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A 4% Dividend Yield Portfolio: Reassessing The Forward-Looking Dividend Growth Rates

2014-11-28 18:08:18| Industrial Machines - Topix.net

Last week I introduced here a diversified portfolio of 10 stocks that currently possesses a 4% dividend yield and suggested that if we took the last five years of Dividend Growth Rates as a proxy for future growth, then the average Future Dividend Growth Rate of this portfolio would be 10% per year. There were many comments that suggested I reassess the assumptions of extrapolations based on the last 5 years of Dividend Growth Rates because, as one commenter stated: "Trees don't grow up to the sky" .

Tags: rates growth portfolio yield

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