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Audio Length: 00:33:35

Many dividend investors find some security in a high yield. But we will show you another perspective during this episode. Ignoring companies with a yield below 1% is a big mistake and we’ll explain to you why. Then, we will share concrete examples of low-yielding dividend stocks that should not be ignored. Ever heard of Apple, Canadian Pacific, or Nike?

You’ll Learn

• There are two different common profiles among dividend stocks: high yield, low growth, and high growth, low yield. One could think stability vs volatility, but also income vs higher total returns… or Canadian Utilities vs Alimentation Couche-Tard. Which one do you think is better?
• Having a higher yield in a portfolio is great. However, the current market makes them harder (and riskier) to find. There are not many reasons to pay a high yield these days.
• Inflation is another good reason to not ignore low-yielding stocks. Companies with low yield high growth will generally continue to generate growth even during the high inflation period.
• A yield below 1% is almost like a non-dividend stock. So what are the advantages of low yield stocks over non-dividend equities? The answer is in the metrics!
• There are many companies in the Technology sector that show low yield and high growth. Learn more about AAPL, MSFT, V, and MA.
• In the Consumer Staples sector, we can think of Church & Dwight (CHD), Costco (COST), and Alimentation Couche-Tard which are safe and stable businesses.
• The brand power of Nike (NKE) and the almost perfect dividend triangle of Park Lawn Corp should not be ignored.
• In case we didn’t have enough, three other companies prove that a yield below 1% should not be ignored by investors: Brookfield Asset Management, Canadian Pacific, and Franco-Nevada.