Most of my recent purchases were what people would call growth stocks, or to be more precise, low dividend growth stocks. Companies like Disney and Visa currently offer around 1% dividend yield which is rather low for someone trying to live off dividend income. On the other hand these companies grow their revenues and earnings at a fairly high pace which makes them interesting.
The low dividend stocks currently in my portfolio are: VISA, DISNEY and maybe NVIDIA. Looking at these first two companies is a maximum of 1%. If you are planning to live of dividends this sounds horrible. However their dividend growth is great. Visa upped their dividend 20% last year and Disney raised the dividend in 2014 with 33%! If we maintain a conservative 20% dividend growth projection for the next few years both companies will double their dividend before 2020.
I don’t want to exclude great companies just because they are in their early stages of dividend growth.