Why Do Utilities and Telecoms Offer Higher Yields than Other Stocks?

Why Do Utilities and Telecoms Offer Higher Yields than Other Stocks?

Dividend growth investors are interested in just one thing: stable dividend payments, preferably with a high initial yield and double digit growth rate. However, not all dividend stocks offer a juicy yield on cost or strong yearly increases. Dividends differ between sectors to the point that even the Euro Dividend All-Stars look like a patchwork of industries and yields. But why exactly do some sectors offer a higher yield than others?

Continue reading →

Portfolio vs. Dividend Diversification

At the top of the list of dividend growth investing benefits many a seasoned investor will rank the principle of income diversification through a basket of stocks that throws off dividends. Rightly so, it’s better to receive ten small paychecks worth €1,000 in total rather than one big cheque worth exactly the same amount. Even though it’s easy to diversify your income sources with dividend stocks, only few investors actively pay attention to it.

Continue reading →

Why I Don’t Benchmark My Dividend Growth Portfolio to an Index

Why I Don’t Benchmark My Dividend Growth Portfolio to an Index

A couple of days ago new reader Samuck asked me why I bother with individual stocks when my ETFs seemed to be performing so much better, which you can clearly see in my latest net worth update. Although I’ve discussed my preference for dividend growth stocks in the past, I feel like his question touches opon a another point that’s often brought up: do I benchmark my dividend growth portfolio to an index and, if so, why?

Continue reading →