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Why I’m Selling A Dividend Winner And Making This Risky Investment…
Dover Corporation is a stock I reviewed and purchased last fall. I bought this company when it was trading at $134.99 per share. And today, Dover is up to $182.50.
For the unfamiliar, Dover is an industrial tech company that makes everything from gas station fuel pumps to garbage trucks.
It’s an interesting, high-quality business.
However, Dover’s dividend growth leaves much to be desired.
Dover has a 1.12% starting dividend yield, and a 5-year compound annual dividend growth rate of 1.22%.
In other words, this is a low-yield and low-growth business.
And since my Dover position is relatively small, I’m planning to sell it and reinvest the profits into a high-yield, high-growth dividend stock that the market hates…
The Stock I’m Buying: Bank OZK ($OZK)
A few weeks ago, I wrote about the power of compound dividend growth and how a stock that consistently grows its dividend by 10% per year will turn an initial $100 in annual dividend income into $2,810 of yearly dividend income by the time you’re ready to retire.
Unfortunately, many stocks that compound their dividend at 10% or more per year are also priced…