BIPC - Buying $1000 of This 4.3%-Yielding Dividend Stock Would Be a Genius Move in May
2023-05-07 10:35:00 ET
Dividend stocks are wise investments. They've historically outperformed the broader market. Over the last half-century, dividend-paying stocks in the S&P 500 have produced an average annual return of 9.2%, according to data from Hartford Funds and Ned Davis Research. That has surpassed the 7.7% average annual total return of the equal-weighted S&P 500 Index.
The even smarter play is to invest in companies that grow their dividends. Dividend growers have significantly outperformed companies with no change in their dividend policy (10.2% versus 6.6%).
Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) certainly delivers dividend growth. The global infrastructure giant has increased its payout for 14 straight years. That's helped it deliver a superior total return of 16% annualized since its inception. It expects to continue growing the payout at a 5% to 9% annual rate. Because of that, investing $1,000 in Brookfield would be a brilliant move this May.
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Buying $1,000 of This 4.3%-Yielding Dividend Stock Would Be a Genius Move in May