Dividend Stocks Deliver Long-Term Returns with Less Risk Compared to Growth Strategies
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Dividend stocks are an important part of many investors' portfolios, providing income and appreciation potential. High dividend and dividend growth strategies both perform well over time.
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High dividend stocks have outperformed the broader market and dividend growth stocks over the long term, though performance over shorter periods varies.
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Over the past 3 years, the high dividend Select Dividend ETF (DVY) has been the top performer compared to the S&P 500, NASDAQ 100, and a dividend growth ETF.
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Dividend investing provides less volatility and risk compared to growth strategies, though it lacks the excitement of high flying growth stocks.
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Investors should stick to dividend investing strategies despite temptations to chase recent outperformers, as patience and discipline tend to pay off over time.
