if a chessboard were to have wheat
placed upon each square such that one grain were placed on the first
square, two on the second, four on the third, and so on (doubling the
number of grains on each subsequent square), how many grains of wheat
would be on the chessboard at the finish? (answer above)
This can work the same way with dividends if you stick with it,
For example AMGN has a history of raising their dividend 20% a year
which means it doubles it's payout every 3 1/2 years. In 2011 it sold for $ 60 and paid a 59 cent dividend. Today it pays $5.90 and in another 4 years it should be paying over $10. and that will be a 17% payout based on the original stock price.
Sweeter still is the stock has gained a corresponding increase in share price.
And AMGN is just one example. Tyson has a 40% dividend alrhough it may slow some in the future.
I guess what I am saying is look for growth and not so much at current yield