So one of my strategies is to buy stocks that I believe will have a YOC (Yield On Cost) of at least 10% after 10 years. See Mathematics tab if you want to know how to calculate this yourself.
For example: Let’s take a purchase I initiated earlier this year of NSC. It’s currently yielding 2.9%. It has a 5-Year DGR (Dividend Growth Rate) of 19.08%. If that continues then the 10 year YOC would be 16.63%, much higher than the 10% I look for. However, I don’t count on them keeping it quite this high. The 3-year DGR is 10.98%. Using this I would get a 10-year YOC of 8.22%. I would expect the DGR to be somewhere between those numbers.