The Future of Dividend Investing

Dividends have accounted for over 40% of total returns over the last 80 years1. And it has been shown that companies that grow their dividends over time will weather a rising rate environment, and can even thrive in its wake. A great example of this would be to compare the current 10-year Treasury note yield to the yield on a basket of dividend growth stocks. If an investor can reasonably say that a basket of stocks will aggressively grow their dividends year-over-year for the next 10 years, the chances of maintaining purchasing power due to inflation are greatly enhanced.

Part of any successful portfolio management approach is the abundance of choices available to reach a stated goal. The more tools an investor possesses, the higher the probability their goal will ultimately be achieved. Although the basic philosophy of dividend investing will always remain the same, the emergence of innovative strategies presents investors with robust value propositions in virtually any market environment.

Source: NASDAQ

Related Articles:
- 7 Tech Stocks With A History of Growing Their Dividends
- Here's Where To Find Great Dividend Stocks
- 8 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- 10 Dividend Stocks For The Ultimate In Deferred Gratification
- 6 Healthcare Stocks With Growing Dividends Yeilding In Excess of 2%