Better Dividend Growth Stock: AbbVie or Amgen?
Since the beginning of the 20th century, dividend stocks have accounted for 75% of the total returns in the U.S. stock market. dividend growth stocks, which are companies that regularly increase their cash payouts to shareholders annually, have significantly outperformed the majority of other asset classes over this 124-year span.
The primary reason for this is the power of compounding. By owning a dividend growth stock and reinvesting the dividends each quarter, your investment can experience exponential growth without any additional effort from you.
The healthcare sector is a hub for numerous leading dividend growth stocks. Many of these companies provide essential goods and services that are less affected by economic cycles. In addition, most healthcare firms have substantial profit margins, leading to healthy levels of free cash flow every quarter. While most of these companies don't offer extremely high yields, they typically increase the size of their dividend payouts annually.
Source Fool.com
