Dividend stocks can be very smart investments. They've historically delivered market-beating total returns.

The best returns have come from companies that increase their dividends. They've produced an average annual return of 10.2% over the last 50 years, according to Ned Davis Research and Hartford Funds. That has outpaced an equal-weight S 500 index (7.7% annualized) and companies with no change in their dividend policy (6.6% annualized).

There are lots of high-quality dividend stocks. Enbridge (NYSE: ENB) and Prologis (NYSE: PLD) currently stand out as some of the smartest dividend stocks to buy for those with around $400 to invest. They offer higher-yielding payouts that should continue rising in the future. That puts them in a strong position to deliver market-beating returns from here.

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Source Fool.com