It's smart to load up your portfolio with dividend-paying stocks because they can deliver powerful growth. In case you're underestimating the power of dividends, check out the numbers below, from a Hartford Funds report:
Dividend-Paying Status |
Average Annual Total Return, 1973-2023 |
---|---|
Dividend growers and initiators |
10.19% |
Dividend payers |
9.17% |
No change in dividend policy |
6.74% |
Dividend non-payers |
4.27% |
Dividend shrinkers and eliminators |
(0.63%) |
Equal-weighted S&P 500 index |
7.72% |
Got it? Good. Now: Which dividend-paying stocks might you invest in? Well, perhaps consider Chevron (NYSE: CVX). Here are some things to know about it:
If you're bullish on the energy industry and are seeking income, you might consider investing in Chevron because it's a well-managed diversified energy company, producing oil and gas, transporting energy products, and processing them.
Management has been investing in renewable fuels and technologies as well. It's producing good results without taking on too much debt, too -- with a relatively low debt-to-equity ratio, around 14.6%, for an energy company.
Before you buy stock in Chevron, consider this:
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Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chevron. The Motley Fool has a disclosure policy.