Source of the Image: Getty Images. The significance of dividends can be seen through the compelling data below, derived from a Hartford Funds report:
Dividend-Paying Category Average Annual Total Return, 1973-2023
Dividend growers and initiators 10.19%
Dividend payers 9.17%
No change in dividend policy 6.74%
Dividend non-payers 4.27%
Dividend shrinkers and eliminators (0.63%)
Equal-weighted S&P 500 index 7.72%
Data provided by Ned Davis Research and Hartford Funds.
Here are four dividend-paying options to consider for your long-term investment portfolio:
1. Pfizer
Pfizer (NYSE: PFE) is a well-known name, especially after the widespread distribution of its COVID-19 vaccines. Despite the recent decline in vaccine demand, Pfizer continues to generate over $8 billion annually from its vaccine and related products. Additionally, its diversified portfolio includes a range of drugs, bolstered by strategic acquisitions like Seagen. With a dividend yield of 6.6% and a favorable valuation, Pfizer presents an attractive investment opportunity.
2. Medtronic
Medtronic (NYSE: MDT), a leader in medical devices, offers a consistent dividend yield of 3.2% that has grown at an average annual rate of 5% over the past five years. With a history of dividend increases spanning over 46 years, Medtronic’s focus on innovation and research positions it for potential growth in the future. The stock’s reasonable valuation and defensive business model make it a compelling choice for income investors.
3. Realty Income
Realty Income (NYSE: O) operates as a real estate investment trust (REIT), known for its monthly dividend payments and consistent dividend growth. With a diverse portfolio of properties leased to a wide range of clients, Realty Income has reported strong revenue growth and consecutive dividend increases. Investors seeking stable income may find Realty Income an attractive option.
4. Schwab U.S. Dividend Equity ETF
Consider the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD) as a diversified investment option. This exchange-traded fund (ETF) offers exposure to a portfolio of dividend-paying stocks, providing investors with a convenient way to access dividend income and potential capital appreciation. SCHD may serve as a suitable addition to a long-term investment strategy.
Consistent Performance and Dividend Growth
With a solid performance record, averaging annual gains of about 11% over the past five and 10 years, this investment opportunity has caught the attention of many savvy investors. Not only has it delivered strong returns, but it has also provided growing dividends, currently yielding around 3.5%. Holding stock in approximately 100 companies, this investment option offers diversification and stability for those looking to build a robust portfolio.
Investing Made Easy with Dividend-Focused ETFs
For those looking to streamline their investment strategy, purchasing shares in a good dividend-focused Exchange-Traded Fund (ETF) can be a smart move. By investing in an ETF, you can benefit from a basket of dividend-paying companies without the need to conduct detailed research on individual stocks. This approach can help mitigate risk and potentially enhance returns over the long term.
Seize the Opportunity
If you’ve ever felt like you missed out on investing in the next big thing, now is your chance to take advantage of a potentially lucrative opportunity. Our team of expert analysts occasionally identifies companies on the cusp of significant growth and issues a “Double Down” stock recommendation. This rare opportunity allows investors to capitalize on the upward momentum of select companies poised for success.
Past Success Stories
Consider the remarkable success stories of past “Double Down” recommendations. Investors who heeded the advice to invest in companies like Nvidia, Apple, and Netflix during key moments in the past witnessed astounding returns. For instance, an investment of $1,000 in Nvidia following a “Double Down” recommendation in 2009 would have grown to an impressive $363,593 by now. Similarly, investments in Apple and Netflix following similar recommendations yielded substantial gains of $48,899 and $502,684, respectively.
Act Now
With new “Double Down” alerts issued for three promising companies, now is the time to act before this opportunity passes by. Whether you’re a seasoned investor or new to the market, the potential for significant returns on these carefully selected stocks should not be overlooked.
Disclosure
Selena Maranjian, a respected voice in the investment community, holds positions in top-performing companies such as Apple, Medtronic, Nvidia, Pfizer, Realty Income, and Schwab U.S. Dividend Equity ETF. The Motley Fool, a trusted source for investment advice, also endorses these companies and recommends options for maximizing returns. Transparency and integrity are central to our recommendations, and we encourage all investors to consider the disclosed information before making investment decisions.
Remember, investing involves risk, and past performance is not indicative of future results. It is important to conduct thorough research and seek professional advice when considering investment opportunities. Stay informed, stay vigilant, and seize the opportunities that come your way in the ever-evolving world of finance.
