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Dividend-growth stocks may very well be even more rewarding than today’s dividend plays with ultra-high upfront yields. Undoubtedly, higher interest rates have paved the way for higher yields on your average dividend payer. And as the Bank of Canada begins cutting back on interest rates (perhaps at some point this year), I wouldn’t be surprised if the ailing high-yield dividend stocks finally catch a break.
Though I’m not against nibbling at the blue chips yielding at or more than 5% (or even the select few that boast yields over 8%), I think that young investors, many of whom may not need the passive-income payments today, may be in a spot to strike a better balance between long-term capital appreciation, dividends, and dividend growth.
Undoubtedly, dividend growth stocks may not deliver TSX-crushing gains over the near term. That said, over the course of decades, the top-tier Canadian dividend…
