My answer has been to take a portion of my portfolio and invest it in Business Development Companies. These companies generally pay out 90% and more of their earnings to their shareholders. As a result there's little retained earnings for internal growth so an investor in these types of stock should expect little, if any, capital gains. He should expect, however, a fairly large dividend, often in the range of 8-12%.
These companies can distribute a relatively large amount of income into my accounts for use in buying dividend growth companies. I'll agree that these companies generally don't grow their dividend and generally they don't grow their stock price, but what they do is throw off a lot of cash. And if you're trying to accumulate dividend growth stocks for the long term benefit to your portfolio, BDCs may be a way of helping the investor find needed cash.
Stocks that grow their dividend is really stock investing nirvana. It'll provide the individual investor financial freedom and security from life's little difficulties. And BDCs may just be the help an individual needs to obtain that goal.
I have included a short list of Business Development Companies to this site for easy access to potential future investing ideas. This list does not constitute a recommendation to either buy or sell these securities. It's simply a list that I use for further investigation, and it can be found here.
Good Luck and Good Trading.