A Better Breed of Dividend Stock

Ring that register Those little checks you receive in the mail (or used to before that whole Internet, e-brokerage thing) actually do more than give you a warm, fuzzy feeling. Evidence proves stocks that pay dividends outperform non-dividend-paying stocks and the broader market over the long term. In a recent article, heralded finance professor Jeremy Siegel echoed as much, saying, "the evidence is overwhelming that dividend-paying stocks are still your best long-term investment. Through the years, diversified portfolios of stocks that pay dividends have not only beaten those that don't, but they have also handily outperformed the S&P 500." It doesn't get much more convincing than that. A better breedAnd while I hope it's abundantly clear we should love dividend stocks, I'll contend that an additional subset exists that provides even greater value than simple dividend payers -- companies that consistently grow their dividends. To support this, I'll employ some basic financial math and common sense (whichever you prefer). Bear with me ... good things to come.... Read more