While the current yield is definitely an important characteristic to consider, as I have stated in the past, learning about the history of a company in delivering dividend increases can be just as important, or more important, in many cases to investors looking to hold a security for a long period of time.
Many growth companies start out without the ability to have high yields, however with modest increases over time, often have yields which rival other potential investments due to a higher compounded dividend growth rate over a period of time.
Expedia has grown its dividend more than 20% per year every year over the past five years, and while the company’s current yield of just more than 1% is certainly nothing to write home about, a 20% compounded dividend growth rate over time will certainly add up for investors looking for a mix of higher growth with the potential for meaningful dividend income in a few years’ time.