3 High-Yield Dividend Stocks That'll Make You Richer in 2021

If you want to give yourself the best possible chance to build wealth in the stock market, history is pretty clear that buying dividend stocks is your ticket to success.

Back in 2013, J.P. Morgan Asset Management released a report that compared the average annual return of publicly traded companies that initiated and grew their dividend between 1972 and 2012 to the average annual return on non-dividend stocks over the same period. The difference in returns was staggering. The dividend stocks yielded an average annual return of 9.5% over four decades, compared to just 1.6% for the non-dividend-paying stocks. In aggregate, this worked out to an 18-fold return difference in 40 years.

Ideally, income investors want the highest yield possible with the least amount of risk. Unfortunately, yield and risk tend to be correlated. Since yield is merely a function of payout relative to share price, a struggling or failing business with a plunging share price could lure unsuspecting income investors into a trap.

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Source Fool.com