Income investors need growth as well as yield. This FTSE 100 dividend stock promises to deliver both for its shareholders.
When investing for income, it's easy to focus on high yield and lose sight of the other magic ingredient that's required – dividend growth. The real value of a dividend payout which is kept flat every year, is eroded each year by the rising cost of living. With inflation at its current level of 2.1%, a dividend that remains the same for five years would be worth 10.9% less in real terms at the end of that period. In contrast, a dividend that rises faster than inflation can provide shareholders with a real terms pay rise every year. Although fast-growing…
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