2 High-Yield Tech Stocks to Buy in December
Periods of high or runaway inflation like the one we're experiencing can be managed by buying dividend stocks. The asset managers at Hartford Funds found that since 1930, dividend-paying stocks have contributed 41% to the total return of the benchmark S&P 500.
The Hartford Funds study also found that from 1970 on, dividends represented an amazing 84% of the index's total return. Reinvesting dividends in the benchmark, coupled with the power of compounding, would have turned a $10,000 investment into more than $3.8 million, compared to just $627,161 based on the index's price alone.
So which dividend stocks should you buy? Simply chasing yield is too risky, since a higher yield often carries higher risk -- but when a good business offers you an above-average return, it's worth investigating further.
Source Fool.com
