Five stocks where dividend growth and a solid yield go together. Plus, how one investor built a nearly $1-million TFSAIf you want a high dividend yield, prepare to sacrifice dividend growth. If you want dividend growth, prepare to sacrifice a high yield. So go two of the key rules of dividend investing.
We happen to have a bumper crop of high-yielding blue chip stocks these days. But a high yield has its costs. Investors are down on these stocks - that’s why the yields are as high as 6 to almost 9 per cent. Elsewhere in the dividend space, there are stocks that have participated in the broad market rally of the past year or so and thus offer diminished dividend yields.
Marcus, 67 and now retired from the military, opened a tax-free savings account as soon as the investment vehicle was created in 2009. After a few years of having the funds invested in a simple, low-paying savings account on the advice of his local bank branch, he took matters into his own hands, first using a dividend strategy, then redeploying the funds into a growth stock. Today his TFSA is worth $883,500. He’s also generating about $11,000 in monthly income – all tax-free.