Why Dividend Growth Beats Yield in a Falling Rate June 2026

In June 2026, with the 10-year Treasury yield dipping to 4.46% and the Fed holding steady at 3.63%, many income investors are chasing high-yield stocks like Realty Income (down 2.5% in five days) and Verizon (down 3.6%). But Lucas and Luna argue that the real opportunity is in dividend growth. They point to Coca-Cola (yield 3.1%, 5% growth) and Johnson & Johnson (yield 3.0%, 6% growth) as examples of stocks that can boost payouts faster than inflation, keeping your income stream rising even when bonds fluctuate. They break down the math: a 3% yield with 6% growth doubles your income in 12 years, while a 5% yield with no growth stays flat. Using the Schwab U.S. Dividend Equity ETF (SCHD) as a proxy for growth over yield, they show why patient investors are rotating away from REITs and utilities. Plus, they discuss how the yield curve flattening (10Y-2Y spread at 0.27) signals that growth stocks may outperform value in the near term. A must-listen for anyone building a portfolio that generates rising cash flow. #DividendGrowth #SCHD #VYM #YieldVsGrowth #CocaCola #JohnsonAndJohnson #RealtyIncome #Verizon #TreasuryYields #FedRateHike #YieldCurve #IncomeInvesting #DividendStocks #June2026 #Finance #FexingoBusiness #BusinessPodcast #DividendInvesting Keep every episode free: buymeacoffee.com/fexingo