While high-momentum growth stocks grab most of the headlines, some of the best performing long-term investments are dividend stocks . The data bears this out. From the end of the first quarter in 1972 through 2019, dividend-paying stocks generated an average annual total return of 12.8%. That outperformed the S&P 500 (12.3% average annual return) and non-dividend payers (8.6%). Meanwhile, the best returns came from dividend growers and initiators (12.9%).
Given this data, beginning investors should consider parking some of their funds in dividend growth stocks. Two great ones for those starting their journey are infrastructure giant Brookfield Infrastructure (NYSE: BIP) (NYSE: BIPC) and renewable energy producer NextEra Energy Partners (NYSE: NEP) .
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Got $1,000? Here Are 2 Great Dividend Stocks for Beginners