Investing for wealth growth involves capital appreciation and dividends. Dividend stocks that offer stable dividends over time are highly sought-after by income investors. However, finding such stocks on the Nasdaq 100 can be challenging, as many high-growth tech companies reinvest their free cash flow back into their businesses for higher returns.
Three mega-cap giants on the Nasdaq stand out for their potential total returns over time. Microsoft (MSFT) is a top long-term investment with strong financials and AI advancements. The company has been paying dividends since 2003, providing compounded returns of over 100% to investors.
Meta Platforms (META), the parent company of Facebook, recently initiated its first dividend. With a small yield expected to grow, Meta appeals to investors bullish on social media companies’ long-term growth potential.
Alphabet (GOOG, GOOGL), the parent company of Google and YouTube, has seen strong returns driven by operational efficiency and AI advancements. The company recently added a dividend, signaling a commitment to returning capital to shareholders.
Overall, these three dividend-paying Nasdaq stocks offer a balance of growth and income potential for investors looking for stable returns over time. It’s important to assess each company’s financial health and growth prospects before making investment decisions.