The Single Best Investment: Dividend Growth Method
Lowell Miller argues one strategy quietly beats high-yield, pure growth and passive indexing over decades. The criteria are stricter than dividend influencers let on.
Yield on cost - 2.5% starting yield growing at 10% per year
Miller's case: growing dividends overtake static high yields within a few years.
Key takeaways
Dividend growth investing focuses on buying shares in companies that increase their dividends yearly, leading to strong long-term returns.
Miller recommends looking for companies with strong financial health, consistent dividend growth, and a durable competitive advantage to identify quality dividend growth stocks.
Dividend growth investing often outperforms growth investing and high-yield investing due to its lower volatility and more sustainable returns.
To apply this strategy, UK investors can use ISAs and SIPPs to hold dividend growth stocks over time.