Value Investing News

Most casual income investors focus on current yield, which is important. However, if your objective as an income investor is to build a portfolio of securities with increasing income, then Yield on Cost is an excellent metric to measure your progress.

To succeed as a dividend growth investor you must identify and purchase stocks with sustainable dividend growth. Inertia is powerful force. Once a company has established a track record of growing its dividend over the decades and developed a shareholder base that expects higher dividends each year, it becomes increasing difficult for management to cut or fail to raise their dividend.