Investors should not only focus on high dividend yields but also on companies growing their dividends consistently by over 10% annually. Such stocks present excellent compounding potential, with dividends expected to double every 7.2 years under the rule of 72. Taiwan Semiconductor is highlighted as a key investment due to its essential role in the semiconductor industry, despite geopolitical risks. Investors can consider these traits to enhance their retirement planning and portfolio stability.
Investors usually focus on stocks that already have stellar dividend yields, but your portfolio could also benefit from dividend growers.
The rule of 72 means a 10% dividend growth rate would double dividends every 7.2 years.
Taiwan Semiconductor (TSM) is a solid stock you can't be wrong on if you are looking to invest for the long run.
The only argument against a long-term investment here is the geopolitical risks surrounding Taiwan.
#dividend-growth #investment-strategy #taiwan-semiconductor #retirement-planning #portfolio-management
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