Got $3,000? These 3 Cheap Dividend Stocks Will Supercharge Your Total Returns
Rising interest rates prompted many investors to rotate from dividend stocks toward higher-yielding fixed-income investments like bonds, T-bills, and CDs over the past year. That might seem like a prudent move, but the right dividend stocks also perform in a rising interest rate environment, and they tend to outperform those conservative investments with rising share prices and compounded returns.
Over the past two decades, a modest $3,000 investment in Taiwan Semiconductor Manufacturing (NYSE: TSM), Procter & Gamble (NYSE: PG), and Target (NYSE: TGT) would have blossomed into roughly $87,000, $17,000, and $23,000, respectively, if you had reinvested their dividends through a dividend reinvestment (DRIP) plan. Let's see why those three blue-chip stocks generated such impressive gains -- and why they can still supercharge your portfolio's total returns over the next few decades.
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Source Fool.com
