Low Dividend Stocks

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.

Published by

Rich Neighbour

This Rich Neighbour: Works smart, Invests regulary, Lives frugally, Makes a financial planning & Enjoys passive income.