Post by Admin/YBB on Oct 30, 2023 14:01:10 GMT -6
Income & Dividend Investing puts primary emphasis on income generation and then on dividend growth; capital gains become secondary. This puts income in the hands of holders who may decide to (i) spend it, (ii) reinvest into the same security, or (iii) invest in something else. If the money is needed for spending, a higher personal value is placed on current income.
%TR = %Dividend_yield + %Dividend_growth + %Change_in_P/D.
In theory, companies can allocate capital well through investments on capex, business expansions, etc, that can lead of high earnings growth, and good price appreciations. But that may not apply to growth companies that aren't managed well and may overspend on poor M&A or bad business expansions; mature companies may also have limited opportunities for business growth.
%TR = %Dividend_yield + %Dividend_growth + %Change_in_P/D.
In theory, companies can allocate capital well through investments on capex, business expansions, etc, that can lead of high earnings growth, and good price appreciations. But that may not apply to growth companies that aren't managed well and may overspend on poor M&A or bad business expansions; mature companies may also have limited opportunities for business growth.
