Dividend Growth Pays

The universe of dividend-paying companies can be segmented by their growth profile, ranging from businesses that pay a static dividend to companies that pay a higher dividend every year. The data shows that since 1972 S&P 500 corporations that grow their dividend, or initiate a dividend, post higher returns than those that do not raise their dividend. Historically, dividend increases have signaled management’s confidence in the prospects of their business.

Ned Davis Research, Inc. provided this graph.

Dividend growing stocks have outperformed over time...

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