Dividend Growth Investor - Recent Investment for February 9th

Good Morning,

As I have mentioned before, there are largely three types of dividend growth stocks.

1. Higher yielding companies, that have a lower dividend growth
2. Those in the medium with medium dividend yields (3% - 4%) and average expected dividend growth
3. Those with lower dividend yields (less than 2%), but higher expected dividend growth

I believe that a diversified portfolio should have an allocation to all three types of companies. Note there are a few exceptions that may cross lines (high yield and high growth), albeit those are more of the exceptions to the rule but still a good reminder that you need exposure to different quality companies on the yield/growth trade-off spectrum.

All of this of course assumes that we are looking at quality companies with defensible cashflows first, coupled with good entry valuations, a long history of dividend increases, and dividend safety.

I made a small investment in a company that is in the third group today..