Dividend stocks can be a great source of returns in the stock market -- especially when inflationary pressures take hold.
According to Fidelity, dividend payments have accounted for 40% of the stock market's total return since 1930. However, dividends account for an even larger share of market returns during inflationary times. During the inflationary decades of the 1940s and 1970s, Fidelity found that dividends accounted for 65% and 71% of the S&P 500 's total returns, respectively.
Dividend stocks are a great source of passive income, too. Three companies with solid dividend yields are Allstate (NYSE: ALL) , Moelis & Co. (NYSE: MC) , and Prudential Financial (NYSE: PRU) . If you were to invest $54,000 equally in these three companies, you would make about $2,000 in income per year.
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Want $2,000 per Year in Passive Income? Invest $54,000 in These 3 Dividend Stocks