Consistency and growth are the name of the game
Dividend stocks with growth potential handily outperform the market over time.
Slow and steady wins the race. That saying is perfect for the stock market. Buying good companies at reasonable prices and holding onto them for the long term is a proven winning investment strategy. I tend to juice my returns by also buying dividend stocks with growth potential.
Dividend investing is arguably the best way to make money on Wall Street. A decade ago, J.P. Morgan Asset Management found companies that initiated and grew their dividend over the four decades between 1972 and 2012 outperformed non-dividend-paying stocks by a wide margin. Dividend payers generated annual average returns of 9.5% over the 40-year period. In contrast, non-dividend-paying stocks could only muster a paltry 1.6% annualized return over the same time frame.
That’s likely because dividend stocks are associated with profitable, well-managed and financially stable companies. They’ve gone through periods of economic and market turmoil and survived.
If you want to buy the best dividend stocks for income, then the following seven companies deserve your attention. These high-income dividend stocks generally pay superior yields compared to the S&P 500, can generate significant wealth over time and just may double your income by 2024.
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