Overview
- Fresh guidance highlights screening for long records of payout increases supported by earnings and free cash flow as the foundation of a durable dividend portfolio.
- Long-term data from Ned Davis Research and Hartford Funds show dividend payers returned about 9.2% annually over 50 years versus 4.3% for non-payers.
- Within dividend strategies, growers and initiators have led with roughly 10.2% average annual returns, outpacing static payers and companies that cut payouts.
- Coca-Cola is cited as a classic example of a resilient dividend grower, logging 63 consecutive annual increases as a long-held Berkshire Hathaway position.
- A widely shared Reddit post details roughly $118,000 in annual payouts from a $1 million portfolio concentrated in higher-yield vehicles such as BDCs, MLPs, REITs and closed-end funds, underscoring the importance of assessing sustainability.