Does Long-Term Dividend Investing Really Work? This Study Says "Definitely."
Dividend growth stocks have outperformed other types and have done so with significantly less risk.
Overview
The last few years have been almost entirely about investing in tech, growth, and artificial intelligence (AI) stocks. That trade has worked immensely well recently. But something has worked even better over the long term.
Dividend stocks can look very boring at times. Names like Procter & Gamble, Johnson & Johnson, and Colgate-Palmolive don't seem nearly as exciting as Nvidia, Micron Technology, and SK Hynix. Yet, exciting doesn't always translate into returns.
Details
What if boring actually ends up being a better investment strategy over decades? A study from Ned Davis Research examined more than 50 years of S&P 500 returns based on the company's dividend policy. The finding? Investing in dividend stocks works pretty well!
Source
Originally published at www.fool.com.