Dividend Investing: Starting Yield Does Not Matter

2,332 views · Published 1 June 2017 · 7:37 · Indexed 4 October 2026

Channel: ppcian · 2017 · People & Blogs

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As a dividend growth investor, my goal is passive income and cash flow. I'm striving for financial freedom (driving a growing stream of dividend income that eventually surpasses my living expenses). Today, I share the topic of starting yield. It is my opinion that starting yield (the initial dividend yield one receives when they first purchase a stock) does not matter. Rather, it's all about time in the market, growth of the dividend over time, and sustainability of the company in question. Over time, one's yield-on-cost will far surpass starting yield. In fact, I'm excited to share my personal story of how my starting yield of 3.5% on Doctor Pepper Snapple is now 6.4%, only six years later. And, my yield will continue to grow more.
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Disclosure: I am long Doctor Pepper Snapple (DPS) stock.

Disclaimer: I'm not a licensed investment advisor, and today's video is just for entertainment and fun. This video is NOT investment advice. Please talk to your licensed investment advisor before making any financial decisions.

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