Many people believe that dividend stocks are boring.

And they aren’t big enough to make a difference in their portfolio.

But that simply isn’t true.

Finding great dividend companies that increase pay-outs every year has been one of the great ways to build wealth.

History proves dividend stocks offer superior returns…

A 2010 study by the world’s largest asset manager, BlackRock, proved that dividend stocks and the income they provide are responsible for 90% of US returns over the last century.

More recently, Hartford Funds published a report showing how a dividend reinvestment strategy would’ve outperformed the broad market by more than 364% since 1970.

And a study of dividends and returns on shares on the JSE since 1967 shows dividends account for over 40% of the total returns investors make on the market.

The fact is a consistent dividend can be responsible for as much as 20%, 30% even 50% of the returns you make on a stock.

So, especially in tough times investors tend to hold on to these shares, and sell the non-dividend payers.

This makes dividend payers less volatile – and often increases demand for them even when the market is doing badly.

In short…

Not only have dividends proved able to deliver strong, long-term growth to a portfolio, but they can also provide stability thanks to their dividend pay-outs and their increased appeal during bear markets or recessionary periods.

There’s still time to access my TOP 5 Dividend Dominators for 2024

Every portfolio needs to hold some dividend stocks and my Real Wealth income stock tips have paid readers handsomely for the past 5 years.

Since 2019, I’ve shared my top Dividend Dominators to own each year and every year, they’ve easily outperformed the JSE All Share…

2019 – 15.7%
2020 – 18.5%
2021 – 25.55%
2022 – 12.1%

So far in 2023, they’re up an average 8%. Doesn’t sound like much but it’s still DOUBLE the JSE All Share’s return.

Now as the year ends, I’ve already released the next Dividend Dominators for 2024.

Based on the current numbers – and assuming their growth trajectory continues, these companies should help you safely – and substantially – grow your wealth.

Income and capital growth! It’s a win-win. You can find my Dividend Dominators for 2024 here.

Not a subscriber to Money Morning?
You can get free daily recommendations like these with Money Morning eletter. Just sign up here.