Dividend growth stocks are an excellent choice for long-term investors as they not only provide regular income but also increase dividends yearly, which can protect against inflation and downturns. These stocks often reflect financially strong businesses, making them less risky. Reinvesting dividends leads to compounded growth over time. Stocks that have consistently grown dividends offer better returns, as evidenced by data showing annual returns of 10.2% for dividend growers from 1973 to 2023. Notably, companies like Starbucks are positioned to become Dividend Aristocrats, suggesting their potential for robust performance.
According to data from Hartford Funds and Ned Davis Research, stocks that initiated a dividend and then grew their payouts have beaten all other stocks, delivering returns of 10.2% annually over the last 50 years compared to 4.3% for non-dividend payers.
Dividend growth stocks are a fantastic choice for investors who want to build wealth steadily over time. They protect against inflation as payouts increase, and they often indicate strong, reliable businesses.
Reinvesting growing dividends can turbocharge your returns through compounding, turning a small investment into a significant nest egg.
Starbucks, having just hit a 52-week high, is expected to join the ranks of Dividend Aristocrats as it showcases impressive growth and resilience in the market.
Collection
[
|
...
]