3 Dividend Growth Stocks to Buy Right Now
Dividends have been crucial to investor returns over the decades. According to Hartford Funds research, 85% of the S&P 500's (SNPINDEX: ^GSPC) cumulative total return since 1960 can be attributed to reinvested dividends and the power of compounding. This historical perspective underscores why dividend-paying stocks remain a cornerstone strategy for long-term investors seeking both capital appreciation and sustainable income.However, not all dividend payers are created equal. Research consistently shows that companies growing their dividends outperform non-payers and those maintaining static payouts. According to Ned Davis Research, a global provider of independent investment research, dividend growers and initiators delivered 10.2% average annual returns from 1973 to 2023, compared to just 4.3% for non-payers. Perhaps more importantly, these dividend growth stocks achieved these superior returns with significantly less volatility.Image source: Getty Images.Continue reading
Dividends have been crucial to investor returns over the decades. According to Hartford Funds research, 85% of the S&P 500's (SNPINDEX: ^GSPC) cumulative total return since 1960 can be attributed to reinvested dividends and the power of compounding. This historical perspective underscores why dividend-paying stocks remain a cornerstone strategy for long-term investors seeking both capital appreciation and sustainable income.
However, not all dividend payers are created equal. Research consistently shows that companies growing their dividends outperform non-payers and those maintaining static payouts. According to Ned Davis Research, a global provider of independent investment research, dividend growers and initiators delivered 10.2% average annual returns from 1973 to 2023, compared to just 4.3% for non-payers. Perhaps more importantly, these dividend growth stocks achieved these superior returns with significantly less volatility.
Image source: Getty Images.
