Updated: February 10, 2017
There are two ways to get big dividends: you can buy stocks that boast high current yields, or you can buy stocks that consistently grow their payouts.
A well-balanced portfolio will include both types of companies, with dividend-growth stocks being the cornerstone of a longer-term income strategy.
Still, investors sometimes get frustrated with dividend growers because to get their outsized payout growth, you often have to settle for a low current yield. And why buy a risky asset that yields 1% when you can get a long-term Treasury that pays 2%?
There are two answers to this question. The first is that Treasuries aren’t risk-free.…