A focus on growth rather than current yield
A focus on growth rather than current yield. Over recent years, a pure dividend yield approach has resulted in substantial share price gains but, looking forward, we expect this approach to generate much lower total returns. We are now starting to look at different dividend-based strategies. We have identified 3 stocks that are worth your consideration: GWA Group, Asciano and Boral. These stocks have a forecast dividend per share growth rate of at least 25% over the next two years and also satisfy the following investment criteria: a market capitalisation of at least $500 million; a current dividend cover (EPS/DPS) of at least 1.2x; a current franking level of 100%; a strong balance sheet; and a Buy rating.