3 Underrated Dividend Stocks You Won't Want to Overlook
Most investors focus on a stock's yield when it comes to dividends. That can cause them to miss out on the greater long-term benefits of dividend growth. Companies that merely maintained their dividend delivered an average total return of 7.08% from 1973 to 2021, according to data from Ned Davis Research and Hartford Funds. That underperformed the 8.2% return of stocks in the S&P 500. On the other hand, dividend growers produced an average total return of 10.68%. Furthermore, they delivered that growing income stream and higher total return with less volatility than the S&P 500 and dividend maintainers.
Three stocks that don't get enough credit for their dividend growth track records are lesser-known real estate investment trusts (REITs), Community Healthcare Trust (NYSE: CHCT), Extra Space Storage (NYSE: EXR), and Terreno Realty (NYSE: TRNO). Here's a look at the secret to their success.
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Source Fool.com