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Dividend Growth Strategy: Top Stocks for 2024 - Analysis by a Financial Expert
According to a report by www.wallstreet-online.de, the dividend growth strategy is a long-term investment strategy in which investors invest in stocks of companies that continually increase their dividends. Unlike other dividend strategies that emphasize immediate cash flow, the focus here is on creating future income. This strategy is aimed at investors who do not currently have an urgent need for dividends and are instead aiming for long-term capital appreciation. The idea behind this strategy is to invest in companies that are financially stable and able to grow their profits over time. If these companies continually pay their dividends...
Dividend Growth Strategy: Top Stocks for 2024 - Analysis by a Financial Expert
According to a report by www.wallstreet-online.de,
The dividend growth strategy is a long-term investment strategy in which investors invest in stocks of companies that continually increase their dividends. Unlike other dividend strategies that emphasize immediate cash flow, the focus here is on creating future income. This strategy is aimed at investors who do not currently have an urgent need for dividends and are instead aiming for long-term capital appreciation. The idea behind this strategy is to invest in companies that are financially stable and able to grow their profits over time. If these companies continually increase their dividends, this will result in increasing dividend yields on the original invested capital. In addition to a solid business model, good dividend growth and a manageable payout ratio of profits, a look at sentiment and alternative data insights should of course not be missing.
The two companies that could be ideal for the dividend growth strategy in 2024 are Home Depot and Starbucks. Home Depot stock has shown solid performance over the past five years. The company has been increasing its dividend for around 13 years and even has room for further increases with a payout ratio of around 53%. Sentiment is also developing positively and the company could see better times operationally. The dividend yield is around 2.4%.
Starbucks, with its global brand, has increased its dividend by around 16% annually over the past decade. The dividend yield is 2.27%. Although Starbucks shares have lost value this year, an entry could be attractive as soon as sentiment turns again.
Choosing these two companies for a dividend growth strategy could provide attractive personal dividend returns in the long term due to their stable financial situation and continuous dividend increases.
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Read the source article at www.wallstreet-online.de