Dividend Investing Is Rewarding. This Strategy Is Even Better. – Barron's
Dividend Investing: A Lucrative Strategy Made Even Better
Dividend investing has long been considered a rewarding strategy for investors looking to build wealth over time. By investing in companies that pay out regular dividends to their shareholders, investors can enjoy a steady stream of income while also benefiting from potential capital appreciation.
But what if there was a way to make this already successful strategy even better? Enter the concept of dividend growth investing. This strategy involves focusing on companies that not only pay dividends, but also have a track record of consistently increasing those dividends over time.
By investing in companies with a history of dividend growth, investors can potentially benefit from increasing income streams and higher total returns. These companies are often well-established, financially stable, and have a strong track record of generating profits.
While dividend investing can be a great way to generate passive income, dividend growth investing takes it a step further by focusing on companies that are committed to rewarding their shareholders over the long term. This strategy can be particularly appealing for investors looking to build a portfolio that provides both income and growth potential.
In conclusion, dividend investing is rewarding in its own right, but the strategy can be made even better by focusing on companies that have a history of increasing their dividends over time. By incorporating dividend growth investing into your investment strategy, you can potentially enhance your overall returns and build a more resilient portfolio for the future.