This makes dividend stocks one of the few assets that see their perceived values rise as their share prices fall. That, in turn, makes them increasingly attractive to shareholders. At face value, most dividend payers might seem to trade at low dividend yields. But yields fluctuate depending on both the stock's price and the amount paid out per period. But while yields fluctuate based on price, the payout for a high-quality dividend stock is consistent. You shouldn't have to guess when or what your next payout will be. So if you buy a stock with an annual dividend of, say, $5 per share, you should be able to feel confident that you'll collect that $5 per share for years to come. But in the very best-case scenario, that dividend should increase over time - even as consistently as it's paid out year after year - causing the yield on your principal to rise. In fact, you may be familiar with a group of stocks that are celebrated for their continual dividend increases... Stock Market Nobility Stocks with 25 or more consecutive years of dividend growth, commonly called "Dividend Aristocrats," reign supreme in the stock market. And it's not hard to see why. A company willing and able to pay a growing dividend, for years or even decades on end, is highly prized and sought after in the market. And not just for the payouts... A consistently rising dividend signals strong underlying financials too. As you can see below, the Dividend Aristocrats have outperformed the S&P 500 over the past 20-plus years. Compared with their non-dividend-paying peers, these are the real rainmakers in the stock game. And by reinvesting the dividends - using them to purchase more of the underlying shares - you can supercharge the stocks' performance over the long term. Even more importantly, you can use these high-quality dividend payers to help craft the perfect all-weather stock portfolio. Not only have they proved able to deliver strong, long-term growth to a portfolio, but they can also provide stability thanks to their dividend payouts and their increased appeal during bear markets or recessionary periods. Invest wisely, Anthony P.S. Every investor - new, old, novice, expert, saver, trader - needs to have dividend payers in their portfolio. To get started, claim your Ultimate Dividend Package here. |
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