2 Dividend Growth Machines: 1 Screaming Buy, 1 I'm Selling Now

Dividend investors can combat inflation by either increasing portfolio yield or focusing on growth stocks with strong dividend growth potential.

The high-yield strategy seeks the optimal balance between yield and acceptable risk, avoiding dividend cuts and NAV erosion.

The dividend growth approach emphasizes businesses with robust long-term growth prospects to ensure dividends outpace inflation.

Failure to achieve sufficient growth in dividend growth stocks risks underperforming inflation (from the current yield and income growth fronts).

In this article, I discuss two dividend growth machines and explain why I'm buying the one and avoiding the other.

There are two ways how dividend investors could combat inflation. One is restructuring portfolio so that the weighted average yield becomes higher but without breaching prudent management norms. The other is focusing more on yield-bearing growth