This Stock Just Hiked Its Dividend 25%. Should You Buy?

If history is any indication, the best thing you can do with your cash is buy dividend stocks. Study after study reinforces the idea that dividend stocks outperform others by a wide margin.

For example, J.P. Morgan Asset Management found that stocks that initiated and then raised their payouts over the 40-year period between 1972 and 2012 returned an average of 9.5% annually versus just 1.6%  for non-dividend-paying stocks.

That's why Smith & Wesson Brands' (NASDAQ: SWBI) decision to hike its payout 25% should make this stock a buy for income investors.

Continue reading

Source Fool.com