Investors seeking reliable income streams should consider high-quality dividend stocks, which have historically outperformed non-payers. A recent study by Hartford Funds and Ned Davis Research highlights that dividend-paying stocks generated an average annual return of 9.2% from 1973 to 2024, more than double the 4.31% return of non-payers. This performance is coupled with lower volatility, making dividend stocks an appealing choice for risk-conscious investors.
Among the standout options are Enterprise Products Partners (EPD) and Realty Income (O). EPD offers a 5.8% yield and has a strong track record of raising its payouts 82 times since its IPO in 1998, benefiting from fixed-fee contracts that insulate it from commodity price fluctuations. Meanwhile, Realty Income, known as “The Monthly Dividend Company®,” boasts a 5.2% yield and has increased its monthly dividends 134 times since 1994, supported by a resilient portfolio of retail tenants and a high occupancy rate.
For market professionals, these two stocks represent not just income opportunities but also a strategic hedge against market volatility, making them worthy considerations for income-focused portfolios.
Source: fool.com