If history is any indication, the best thing you can do with your cash is buy dividend stocks. Study after study reinforces the idea that dividend stocks outperform others by a wide margin.
For example, J.P. Morgan Asset Management found that stocks that initiated and then raised their payouts over the 40-year period between 1972 and 2012 returned an average of 9.5% annually versus just 1.6% for non-dividend-paying stocks.
That's why Smith & Wesson Brands ' (NASDAQ: SWBI) decision to hike its payout 25% should make this stock a buy for income investors.
For further details see:
This Stock Just Hiked Its Dividend 25%. Should You Buy?