BIPC - $5000 Invested in These 3 Ultra-High-Yield Dividend Stocks Could Make You Rich
2023-11-28 05:15:00 ET
Dividend stocks have historically been enriching investments. Over the last 50 years, the average dividend stock in the S&P 500 has produced a 9.2% average annual total return, according to data from Ned Davis Research and Hartford Funds. That outperformed an equal-weighed S&P 500 index, which delivered a 7.7% average annual total return. At those rates of return, a $5,000 investment in dividend stocks (with dividends reinvested) would have grown to over $400,000 during that time frame, more than double the result that would have been delivered by a similar investment in the S&P 500.
Companies with higher dividend payout ratios (74% on average) -- which typically have higher dividend yields -- outperformed the market 67% of the time, according to data from Hartford Funds and Wellington Management. That tied for the second-best average outperformance over the long term. This data shows how owning high-quality, high-yielding dividend stocks can help make you richer over the long term.
Enbridge (NYSE: ENB) , Brookfield Infrastructure (NYSE: BIPC) (NYSE: BIP) , and Realty Income (NYSE: O) have all been wealth-creators for their shareholders over the years, mainly due to their big-time dividends. And all of them are in excellent positions to continue enriching their investors. That makes them great stocks to invest $5,000 in for the long haul.
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$5,000 Invested in These 3 Ultra-High-Yield Dividend Stocks Could Make You Rich