Dividends4Life: Beat The Market With Dividend Stocks

Beat The Market With Dividend Stocks

Posted by D4L | Thursday, May 16, 2013 | | 0 comments »

It couldn't be simpler (or cheaper) to beat the pros. If you use one of my favorite strategies, your returns will be the strongest amongst all your friends, and, best of all, this tactic has proven itself over decades in all kinds of market environments. Again, it's simple… Buy stocks that raise their dividends every year. These stocks typically outperform the market. Even better, they put more money in your pocket every year.

Since 2003, the S&P Dividend Aristocrat Index, which consists of S&P 500 stocks that have raised their dividend every year for 25 years or more, has beaten the S&P 500 by an average of 71% over rolling 10-year periods (1994-2003, 1995-2004, etc.). Better yet, even during the index's worst period, it still beat the broader market by 50%. Even in the short term, Aristocrats outperform the market, beating the S&P 500 in 17 of the past 23 years on a one-year basis. The average out-performance was over 4% per year.

Source: Seeking Alpha

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