Dividend Stocks Shine in Bull Markets Too
Dividend investing has long been seen as a safety play — the strategy you fall back on when the market gets rough.
And sure, there’s truth to that. Dividend stocks do offer stability when volatility picks up. But if that’s all you think they’re good for, you’re missing a huge part of the story.
Because in a strong market — just like the one we’ve been in for most of 2024 and 2025 — high-quality dividend stocks can do more than just hold their ground. They can grow right alongside the market… and sometimes even beat it.
That’s exactly what’s happening with KEY stock. Since November 1, 2023, KEY has delivered a total return of 45%. That includes both share price growth and dividend income. Over that same timeframe, the SPY — the S&P 500 ETF — has returned about 25%. So while SPY has had a solid run, KEY has quietly outpaced it by a full 20 percentage points.
And this isn’t just a one-off example. Dividend-paying stocks with solid financials and consistent growth histories tend to do well when markets are climbing.
Why? Because they combine two powerful forces: capital appreciation and income. So while other investors are chasing the next big breakout, dividend investors are stacking returns from both ends.
Sure, dividend stocks don’t go viral on social media. They don’t double overnight or light up Reddit forums. But they do something better: they reward patience. Many of them steadily raise their dividends year after year, which boosts your yield and adds more compounding power to your portfolio.
And if you reinvest those dividends?
That’s when the real magic happens. Your income stream grows, your share count grows, and your total return gets a serious lift — especially when prices are rising too.
KEY is a perfect example of this strategy in action. That’s why it’s a proud member of our Dividends Forever Portfolio.
The bottom line? Dividend investing isn’t just for surviving tough markets — it’s a smart, powerful way to thrive in bullish ones too. You just need to own the right companies and give them time to do what they do best.
— Nate Tucci
P.S. Want to see every stock I trust to grow both income and capital in any market? Check out the full Dividends Forever Portfolio right here.
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