Want $2,500 in Annual Dividend Income? Invest $106,000 in This Tech Stock

Some investors mistakenly equate dividend stocks with slow growth, but historical data refutes that idea. Between 1973 and 2020, dividend-paying stocks in the S&P 500 actually outperformed the broader market, and those that raised their dividend regularly did even better.

Texas Instruments (NASDAQ: TXN) is a perfect example. This semiconductor company has raised its quarterly payout every year since 2004, and over the same period, its share price has skyrocketed 560% (excluding dividends), outperforming the S&P 500 by a wide margin.

Going forward, I expect both trends to continue. That means shareholders should benefit from market-beating returns and a rising quarterly dividend, helping them generate wealth in two different ways. Here's why I think that's possible.

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Source Fool.com