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Trading Ideas

Demand the Best of Both Worlds

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%.

I call these investors “yield grabbers.” They’re looking to cash a big dividend check …read more […]