Investment DictionaryDividend Growth Stocks
Dividend growth stocks are stocks that are hard to find in reality. Because the stock must be either value stock (large dividend payments) either growth stock (small dividend payments) or either something in between.
If you are looking for dividend growth stocks, the best investments for you could be companies that are in between growth and value stocks. Such investments may have 2.5%-3.5% dividend yield and maintain higher growth than pure dividend stocks.
Theoretically such stocks could be really good investments if would contain advantages of both: dividend stocks and growth stocks. Dividend stocks are not only paying out high dividends but also have a stable cash flow and stable income. In other hand growing company is worth much more and if a company has a stable cash flow which is growing at least more than ten percent a year, it could be a perfect investment.
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