The old adage "If you can't beat them, join them" is great for investors to take to heart. If you can't beat the S&P 500 by picking individual stocks, owning an S&P 500 index fund and at least earning market returns is a smart move.

However, what if I told you there's a tried-and-true method of beating the market? That strategy is investing in dividend stocks. Not just any dividend-paying stocks, mind you, but those that can grow their dividend payments consistently. That combination of a rising dividend income stream and price appreciation from earnings growth has historically yielded market-beating total returns.

Hartford Funds and Ned Davis Research have been tracking the average annual total returns of companies in the S&P 500 by dividend policy. Here's a look at the returns and beta (a key metric measuring a stock's volatility compared to the broader market) of companies by their dividend policies over the last 50 years. 

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Source Fool.com