2024-02-08 05:06:00 ET
There are a lot of ways to make money on Wall Street. However, few strategies have a better long-term track record of making investors richer than buying and holding high-quality dividend stocks .
In 2023, Hartford Funds released an extensive report ("The Power of Dividends: Past, Present, and Future") that examined the ins and outs of how dividend stocks have outperformed over long stretches. In collaboration with Ned Davis Research, Hartford Funds found that dividend payers averaged an annual return of 9.18% over a half-century (1973-2022). By comparison, companies that didn't offer a payout to their shareholders produced an average annual return of just 3.95%.
The not-so-subtle secret to the success of dividend payers is that they're almost always profitable on a recurring basis, time-tested, and can provide transparent long-term growth outlooks. The more a company can look into the future and offer accurate forecasts, the more likely Wall Street and investors will reward that business with an increasingly higher market value.
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Want $300 in Super-Safe Monthly Dividend Income? Invest $32,000 in the Following 3 Ultra-High-Yield Stocks.