Want $5,000 in Annual Dividend Income? Invest $60,300 in These High-Yield Stocks
Although there are a lot of ways to make money in the stock market, few investing strategies have delivered the same level of long-term success as buying dividend stocks.
Nine years ago, J.P. Morgan Asset Management, a division of banking behemoth JPMorgan Chase, released a report that compared the performance of income stocks to non-dividend payers over a four-decade stretch (1972-2012). The report showed that dividend stocks averaged an annual return of 9.5%, which equates to investors doubling their money every 7.6 years. Meanwhile, the non-dividend stocks scraped their way to an average annual return of just 1.6% over 40 years.
These results are precisely what we'd expect to see, even if the magnitude of the outperformance is a bit shocking. Companies that pay regular dividends are almost always profitable on a recurring basis, time-tested, and have clear long-term growth outlooks. In other words, they're the type of businesses we'd expect to increase in value over time.
Source Fool.com
