Want a High Dividend Yield? Buy These Stocks and Wait 5 Years
A common mistake many income-focused investors make is focusing on a stock's current dividend yield. At best, these stocks will provide a bond-like return primarily consisting of dividend payments. Meanwhile, some have high yields because their payouts are on shaking ground, putting them at risk of a reduction.
A far better investment strategy is to seek out companies that pay growing dividends. Dividend growth stocks have historically delivered superior total returns (with Dividend income plus stock price appreciation).
American Tower (NYSE: AMT) and Invitation Homes (NYSE: INVH) stand out for their ability to raise their dividends. Because of that, investors who buy today could be earning a much higher yield five years from now.
Source Fool.com
