VIG - The Best High-Yield Dividend Growth Stocks For Long-Term Investing

2024-04-18 08:15:00 ET

Summary

• Dividend growth stocks provide passive income compounding through per-share dividend growth and reinvestment of dividends.
• These stocks often generate substantial long-term total returns due to the increasing dividend per share payout.
• We share six traits of the best high-yield dividend growth stocks for long-term investing.
• We also share several stocks that have each of these six traits.

Dividend growth stocks make for very attractive long-term investments because they provide highly compelling passive income compounding. They do this through the exponential process of dividend growth through a two-tiered effect:

1. They grow the investor's passive income stream organically through per-share dividend growth.
2. They grow the investor's passive income stream inorganically by giving the investor the option of reinvesting their dividends to buy additional shares, further accelerating the dividend growth process.

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