Why I Just Couldn't Resist Buying More of This Magnificent Dividend Stock
While I love collecting dividend income, I've changed my investing strategy in recent years. I initially focused on buying stocks with high dividend yields. However, after coming across some remarkable data, I've pivoted to investing in stocks that can grow their dividends.
This strategy shift has paid bigger dividends than I expected. I'm earning higher total returns due partly to rapidly rising yields on my initial investments as the companies I own grow their payouts. One of the best examples of this in my portfolio is American Tower (NYSE: AMT). The infrastructure real estate investment trust (REIT) has done a magnificent job growing its dividend. That has provided a big boost to the dividend income I now earn on this investment. With more dividend growth ahead, I couldn't resist the opportunity to add to my position recently.
American Tower converted to a REIT in 2012 and started paying dividends. Since then, the company has grown its dividend payment at a more than 20% compound annual rate. That rapidly rising payout has really added up over the years.
Source Fool.com
