Better Dividend Growth ETF: Vanguard Dividend Appreciation ETF or iShares Core Dividend Growth ETF
Dividend growth stocks can be powerful investments. Hartford Funds and Ned Davis Research dug into the data on stocks based on their dividend policy. They found that over the past 50 years, dividend growers produced a higher total return with less volatility than companies that didn't increase their dividends regularly, those that cut or eliminated their payouts, and those that didn't pay dividends.The outperformance really added up over the long term. A hypothetical $100 invested in S&P 500 dividend growth stocks in 1973 would have grown to nearly $15,874 by the end of 2024. However, a similar $100 investment made in companies that didn't increase their dividend would have only grown to $2,983, while $100 in dividend non-payers would have only been worth $899. Meanwhile, a $100 investment in dividend cutters and eliminators would have lost money and been worth only $63 at the end of this time frame. Image source: Getty Images.Continue reading
Dividend growth stocks can be powerful investments. Hartford Funds and Ned Davis Research dug into the data on stocks based on their dividend policy. They found that over the past 50 years, dividend growers produced a higher total return with less volatility than companies that didn't increase their dividends regularly, those that cut or eliminated their payouts, and those that didn't pay dividends.
The outperformance really added up over the long term. A hypothetical $100 invested in S&P 500 dividend growth stocks in 1973 would have grown to nearly $15,874 by the end of 2024. However, a similar $100 investment made in companies that didn't increase their dividend would have only grown to $2,983, while $100 in dividend non-payers would have only been worth $899. Meanwhile, a $100 investment in dividend cutters and eliminators would have lost money and been worth only $63 at the end of this time frame.
Image source: Getty Images.
