2025-06-17 03:41:00 ET
Investing in the stock market is an excellent way to build long-term wealth. For investors seeking passive income, dividend stocks are one way to turn your portfolio into a cash-generating machine. Not only that, but companies that pay dividends consistently tend to outperform those that don't.
Research by Hartford Funds, in collaboration with Ned Davis Research, shows that dividend-paying companies have historically outperformed their non-dividend counterparts. Over a 50-year period, investors in dividend stocks enjoyed an annual return of approximately 9.2%, more than double the 4.3% return from non-dividend-paying stocks. Companies that consistently grow their dividend perform even better, with annual returns of 10.2% and lower volatility.
If you're looking for dividend stocks that have reliably grown their payouts, here are five stocks to consider today.