I am looking to buy shares for long-very long term investment. Eventually I imagine that I would like to live off the dividends.
Should I even be looking at low yield stocks now? It looks like over the last 10 years CSL has performed well every step of the way. But their yield is low.
The problem that I see is that if I hold this stock for a long time and then sell it then I will be up for a large capital gains tax bill (even with the 50% discount).
What are the pros and cons when considering low yield vs high(er) yield for a long term investment?