How Does the Future Look for Dividend Investing?

Dividend stocks have managed to outperform non-dividend stocks since 1972. In addition to that, elite dividend indexes such as the Dividend Aristocrats and Dividend Achievers have also managed to outperform the market for almost two decades. Many companies have managed to grow earnings sufficiently enough in order to be able to create a long record of consecutive annual dividend raises. Some investors however are worried, that the last two decades worth of dividend investing data is an aberration, and as a result should not be included in one’s investment decisions.Another issue with dividend investing is that nothing is set in stone and permanent. The companies with the longest streaks of consecutive dividend increases of the 1990’s have either been acquired, stopped raising dividends or even worse - eliminated them. This is a particular warning sign for many investors, which prevents them from investing in some of the best dividend stocks such as Johnson & Johnson (JNJ), Coca Cola (KO) or Procter & Gamble (PG).... Read more