A significant proportion of overall stock market returns has historically stemmed from dividends. Thus, I believe it is important to incorporate at least some dividend-paying stocks, LICs or indices into your portfolio, ideally ones with robust cash flow to enable increases above the rate of inflation over time.
It is also important to consider the long-term competitive advantages of the stocks you decide on, as dividends will quickly dry up if a company’s cash flow experiences structural damages. Here are two ASX stocks that I think have sufficient tailwinds to ensure a rising stream of dividends over at least the […]
Full Post at www.fool.com.au