7 No-Brainer Dividend Growth Stocks to Buy Right Now
While many investors chase fleeting market trends, dividend growth investing offers something far more valuable. Namely, compounding wealth through businesses that pay you to own them. Moreover, elite dividend growth stocks, defined as those with five-year dividend growth rates above 6% and payout ratios under 75%, have a stellar record of delivering superior returns to the benchmark S&P 500.This outperformance reveals a deeper truth about exceptional businesses. Companies that consistently grow dividends faster than 6% annually while maintaining conservative payout ratios possess two critical advantages: accelerating earnings power and disciplined capital allocation. Equally as important, these traits typically signal businesses protected by wide economic moats, pricing power, network effects, and/or regulatory barriers that competitors can't easily overcome.Image source: Getty Images.Continue reading
While many investors chase fleeting market trends, dividend growth investing offers something far more valuable. Namely, compounding wealth through businesses that pay you to own them. Moreover, elite dividend growth stocks, defined as those with five-year dividend growth rates above 6% and payout ratios under 75%, have a stellar record of delivering superior returns to the benchmark S&P 500.
This outperformance reveals a deeper truth about exceptional businesses. Companies that consistently grow dividends faster than 6% annually while maintaining conservative payout ratios possess two critical advantages: accelerating earnings power and disciplined capital allocation. Equally as important, these traits typically signal businesses protected by wide economic moats, pricing power, network effects, and/or regulatory barriers that competitors can't easily overcome.
Image source: Getty Images.
