How to Balance Growth and Yield on an Investment

So let's say the stock grows at 5%, but you're getting a 4% yield on the dividend. That's a 9% return, which is nothing to sneeze at. And it actually grows exponentially. So if we're talking about one year, then yeah, 9%. But it's actually much higher if you are looking at a 10 or 20 year time period because that extra 4% is compounding. You're getting that and if the stock stays low, you're getting that every year. The impact of that is more so on the long time.

Transcript

Play full episode

The AI-powered Podcast Player

Save insights by tapping your headphones, chat with episodes, discover the best highlights - and more!

Get the app