There are two types of dividend investors out there: yield grabbers and growth groupies. But the most successful dividend income investors I know capture both.
Income-hungry investors aren’t satisfied with receiving a paltry 2% dividend yield.
I don’t blame them! Earning 2% a year doesn’t begin to cover Starbucks’ (Nasdaq: SBUX) 10% price hike on a cup of coffee this year, let alone inflation.
That’s why many investors gravitate toward high-yield dividend stocks. For the sake of this argument, I’ll define high-yield stocks as those with yields greater than 4%.