Buy-and-hold dividend growth investors know something about the best dividend stocks to buy that less experienced yield-hunters don’t: it pays to be patient when you’re investing for income.
Shares in companies that raise their payouts like clockwork decade after decade can produce superior total returns (price change plus dividends) over the long run, even if they sport apparently ho-hum yields to begin with.
That’s partly because regular dividend increases lift the yield on an investor’s original cost basis. Stick around long enough, and the modest yield you received on your initial investment can hit double digits one day.
Companies with long histories of annual dividend growth also offer some peace of mind. After all, any company that…
