Dividend Growth Investing: It's About The Income

Introduction: I am primarily a Dividend Growth Investor (which is commonly referred to as a “DGI”). So, what does that actually mean?
That’s a good question and one that sometimes is difficult to answer concisely, because the people who use the strategy of Dividend Growth Investing have different approaches to the way that they use the strategy.
For example, there are those who will not consider purchasing any company that has a dividend yield under a specific yield point and there are others who will purchase any Dividend Growth stock if the dividend growth rate meets a certain amount.
There are some DGI who “average up” on their holdings (adding more to positions that have appreciated) and there are those who “average down” (adding more to their positions when the price has declined).
There are DGI that reinvest dividends habitually through their brokerage house and there are those that collect dividends as cash and then once they have amassed enough cash, make purchases of stock in the same company or something new.
There are DGI who “never sell any position” and there are those who are comfortable with selling a position when they have decided to go in a different direction, have enough capital appreciation that equals some factor of yearly dividends.
There are DGI that balance their positions to maintain a 2-3% equal weighting of their holdings and there are DGI who “let their winners run”... Read more