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Our 3-Part Strategy For 20%+ Dividend Growth In 2023

Here are three things we are going to look for in dividend growers we’re targeting this year:

  1. “Medium-sized” dividend yields–in, say, the 3% to 5% range–so we’ve got a decent payout now and a 7%+ yield on our original buy soon, thanks to …
  2. Accelerating dividend growth–I’m talking growth rates much faster than the S&P 500 average and PepsiCo’s token hikes.
  3. Finally, we like to see a healthy share buyback program–especially this year, as the 2022 selloff left many stocks trading on the cheap–an ideal time for buybacks to create real value. Clearly, corporate C-suites are getting the message: S&P Global Indices expects S&P 500 buybacks to pop 10% this year.

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This post originally appeared at Contrarian Outlook.