4 Dividend Stocks Committed to Paying Investors More Money

In investing, one immutable fact rises above the rest – dividends matter, and they matter a lot. The data shows that portfolios invested in the highest dividend paying stocks consistently outperform the broader market. Meanwhile low or no dividend payers chronically underperform. Why is that? Because dividends are the surest way companies return profits to shareholders. Firms have a choice – either pay dividends now or reinvest earnings in hopes of higher profits later. Often managers prefer the second option, trying to empire build instead of letting capital flow back to owners. But study after study shows companies struggle to efficiently redeploy retained earnings. Sometimes less is more – a modest dividend returned today, coupled with consistent moderate growth over time, generates outstanding investor returns. Dividend reinvestment drives exponential growth.

Independent Bank Group, Inc. (NASDAQ: IBTX) embraces the power of dividends. This regional bank sports a 3.4% dividend yield, having raised its dividend every year since 2015. The payout ratio sits at a reasonable 37%, providing plenty of safety and room for future increases. The commitment of Carter’s Inc. (NASDAQ: CRI) to paying shareholders is evident in its attractive 3.89% dividend yield, which history shows leads to significant outperformance. Dividends matter greatly for MVB Financial Corp. (NASDAQ: MVBF), a financial services company loyal about returning cash flows to shareholders. Vail Resort Inc’s (NYSE: MTN) dividend policy shows their commitment to rewarding shareholders through significant cash returns. With an annual dividend yield of 3.71%, Vail Resort Inc significantly outperforms 80% of companies.

Source: Wall St. 24/7

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