Hello @Cato_Bamboo, you seem to be confusing dividend growth with dividend yield.
The dividend yield indicates what percentage of the current share price is paid out as dividends. Dividend growth shows how much a company's dividend increases over the years.
Generally speaking, it can be said that
Companies with a high dividend yield often have slower dividend growth.
Companies with high dividend growth usually start with a lower initial yield, but offer higher payouts in the long term. In addition, their share prices often perform better as less capital is distributed and more is invested in the company's productivity.
If you have a long-term investment horizon and aim to live off your dividends at some point, you should focus on dividend growth and your personal dividend yield.
Since Realty Income already distributes 76% of its funds from operations, the dividend can only be increased moderately.
The dividend yield indicates what percentage of the current share price is paid out as dividends. Dividend growth shows how much a company's dividend increases over the years.
Generally speaking, it can be said that
Companies with a high dividend yield often have slower dividend growth.
Companies with high dividend growth usually start with a lower initial yield, but offer higher payouts in the long term. In addition, their share prices often perform better as less capital is distributed and more is invested in the company's productivity.
If you have a long-term investment horizon and aim to live off your dividends at some point, you should focus on dividend growth and your personal dividend yield.
Since Realty Income already distributes 76% of its funds from operations, the dividend can only be increased moderately.
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@thewolfofxetra Very informative, thank you.......
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