Dividend stocks can make wise investments. Dividend payments have historically contributed over 40% of the S 500's total return. That's helped dividend stocks outperform. dividend payers in the S 500 have delivered an average annual total return of 9.2% over the last 50 years compared to 7.7% for an equal-weighed market index, according to data from Hartford Funds and Ned Davis Research.

While dividend stocks have performed exceptionally well overall, dividend growth is the key to driving outperformance. dividend growers and initiators have delivered a 10.2% average annual total return compared to 6.6% for companies with no change in their dividend policy. 

Southern Company (NYSE: SO) stands out for its dividend growth. The utility has given its investors a raise each year for more than two decades, a trend that seems likely to continue. It makes Southern look like a brilliant dividend stock to buy for those seeking a potential lifetime of dividend income.

Continue reading

Source Fool.com