Microsoft and These 2 Growth Stocks Aren't Passive Income Powerhouses Yet, but They Continue to Raise Their Dividends at a Rapid Rate
One drawback of investing in growth stocks is that they tend to pay small dividends or no dividends at all. The idea is to reinvest capital into the business to grow its value rather than give investors the temporary benefit of a dividend payment. However, there's a limit to how much reinvestment is needed before it becomes borderline wasteful. That's why many growth companies take a more balanced approach to their capital return programs.
Microsoft (NASDAQ: MSFT), Broadcom (NASDAQ: AVGO), and (NYSE: V) are good examples of former up-and-coming growth companies that have matured and no longer need to pour every ounce of excess profit back into their businesses. Despite their low yields, all three companies are highly committed to their dividends. Here's why they are all buys now.
Source Fool.com