Dividends4Life: Dividend Growth Stocks are the Way to Go

Dividend Growth Stocks are the Way to Go

Posted by D4L | Saturday, August 28, 2010 | | 0 comments »

Over the course of the last few years, the Dow Jones has lacked consistency, presenting a volatile platform of figures that are making investors ever more hesitant. What market analysts are now seeing is the growth and solidarity contained in dividend stocks, exposing growth stocks as being somewhat precarious. Over long periods of time, dividend stocks outperform non-dividend stocks, and dividend-increasing stocks outperform dividend stocks in general. This finding is not being ignored as dividend investors see a much better long-term return when investing in dividend stocks, especially those that increase their dividends regularly.

One of the main reasons why dividend increasing stocks are proving to be so much more lucrative is that they embody a select group of companies which have enough in earnings to reinvest back into the business itself, but have plenty left over to distribute to shareholders. Rising profits also means rising dividends for shareholders, which ultimately equates to rising stock prices in the long term.

Source: FavStocks

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