No. of Recommendations: 4
FWIW, here's my take on effective yields.

If I buy a dividend paying stock with the intention of holding it for an indefinite amount of time then I will consider it's effective yield. I prefer to buy a 2-5% yielding stock with 3%+ growth to buying bonds with fixed yields. I am, in essence, buying the dividend paying stock as a replacement for fixed income instruments and have no intentions of selling; only on wactching the dividend rise in relation to my original purchase price. In this scenario, I think it makes sense to approach the issue this way. Make sense?

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