What Is the Best Dividend-Growth ETF to Buy and Hold?
Some investors might overlook dividend stocks in favor of more exciting themes like artificial intelligence, genomic medicine, or self-driving cars. However, dividend stocks have been a key driver of the S 500's total returns since 1930, accounting for about 40% of its gains over this period. Dividend-growth stocks, or companies that regularly raise their dividends, are especially powerful in this regard. The main reason is that reinvested dividends take advantage of the concept of compounding to amplify capital gains.
Finding the best dividend-growth stocks can be challenging. Fortunately, the dividend-growth strategy works well with the exchange-traded fund (ETF) approach to investing. ETFs are cost- and tax-efficient vehicles that often outperform individual stocks because of their diversification factor (less risky than single stocks).
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Source Fool.com
