It’s easy to overlook in a noisy, news-driven market…
But one of the most powerful forces in long-term investing is dividend growth.
Sure, a stock that pays a dividend is great. It gives you income you can count on. But when that dividend growsyear after year? That’s when things really start to snowball.
Just look at Fifth Third Bancorp (FITB) — one of the core positions in my Dividends Forever Portfolio. Since November 2023, FITB has delivered a 35% total return, crushing the 19% return from SPY over the same stretch.
And that’s not just price movement. A big part of that outperformance comes from FITB’s steadily rising dividend.
Here’s why that matters…
As those payouts grow, your income gets a built-in raise. That means your yield on cost improves every year — and if you’re reinvesting dividends, you’re buying even more shares that will also keep paying you more over time.
This is how dividend investing turns from steady income… into compounding power.
And when markets get rocky, this approach really shines. While others are stressing about short-term drops, dividend growth investors are getting paid — and setting themselves up for even bigger paychecks later.
That’s exactly why I love owning names like FITB.
It’s not just a good stock. It’s a company that rewards shareholders year after year… and has the numbers to prove it.
Bottom line?
If you want to build real wealth and sleep well at night, few strategies beat buying strong companies with a track record of growing dividends.
That’s the kind of investing that works in bull markets, bear markets… and everything in between.
— Nate Tucci
P.S. FITB is just one of the names we hold in the Dividends Forever portfolio. Click here to see the full list and learn how we’re using dividend growth to stay ahead — no matter what the market throws at us.
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