Dividend Income: High-Growth Stocks as Smart Investments

Over the past five decades, dividend-paying stocks have outperformed non-dividend-paying stocks in the S&P 500 by more than double on average. Stocks of companies that regularly increase their dividends have performed particularly well. According to data from Ned Davis Research and Hartford Funds, Dividend Growth Stocks achieved an average annual return of 10.2%, compared to only 4.3% for companies without dividend payments. The long-term return of such high-growth dividend stocks is remarkable. An invested amount of 100 dollars in an average Dividend Growth Stock would have grown to over 14,100 dollars over 50 years, with dividends reinvested. In comparison, it would have been only about 850 dollars for non-dividend payers. Sun Communities, Invitation Homes, and NNN REIT are outstanding examples of stocks that regularly increase their dividends. They appear as smart investments for investors with additional capital. Sun Communities, a specialized Real Estate Investment Trust (REIT), owns manufactured home communities, RV resorts, marinas, and UK holiday parks. The company has consistently recorded strong performance and achieved continuous positive net operating income growth for over 20 years. This has enabled a dividend increase that has steadily risen for eight years. Invitation Homes also positions itself strongly in the real estate sector, focusing on single-family homes for rent in 16 major US markets. Since its IPO in 2017, the company has increased its dividend annually, most recently by 3.6%. The outlook for both companies indicates further dividend increases, supported by solid business models and financial strategies.