What is the difference between dividend yield and dividend growth?

What is the difference between dividend yield and dividend growth?

Dividend yield is the annual dividend payment divided by the stock price, while dividend growth refers to the rate at which a company's dividend payments increase over time.

Which one should I focus on when investing?

It depends on your investment strategy. If you want immediate income, focus on dividend yield. If you're looking for long-term growth, consider dividend growth.

Can you give me an example of a stock with high dividend yield?

Sure! A common example is AT&T, which has historically offered a high dividend yield, but it's important to research its sustainability.

What about a stock known for dividend growth?

A great example is Johnson & Johnson, which has a strong track record of consistently increasing its dividends over the years.