5 Reasons Why I’m Into Dividend Growth Investing

The fourth reason is right in the name of the strategy. It's dividend investing. The "G" in DGI stands for growth. That's because those reliable costs of life I mentioned earlier are also rising. Again, expenses like shelter and food are going up all the time.

What do dividend growth stocks like Accenture, L3Harris Technologies, and Sherwin Williams all have in common? They all have a 10-year dividend growth rate that's well in excess of 10%. With inflation in the low-single-digit range, these stocks are inflation busters.

The fifth reason? Dividend growth investing tends to beat the market over the long run. However, while I'm not specifically gunning for outperformance, I definitely won't turn it down if it comes my way.

After all, reinvested dividends account for the vast majority of the S&P 500's total return over the last five decades. Between 1973 and 2020, per the aforementioned research, Dividend Growers & Initiators turned $100 into over $11,000. An equal-weighted S&P 500 turned that same $100 into less than $4,000.

I can't guarantee you the same results that I've experienced, but these five reasons clearly show you why dividend growth investing might just be the perfect long-term investing strategy, especially if you're chasing after the same goals I chased after.

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