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Yahoo Finance Picks Dividend Stocks, Citing Study That Favors Growers

Hartford Funds links most S&P 500 gains since 1960 to reinvested payouts.

Overview

  • Yahoo Finance recommends three dividend stocks for investors with $2,000 to deploy and spotlights Realty Income as a featured pick.
  • The Hartford Funds analysis finds that 95% of the S&P 500’s cumulative total return since 1960 stems from compounding and reinvested dividends.
  • Dividend growers posted annual returns of 10.2% with lower volatility, compared with 4.3% for non-dividend-paying stocks, according to the study.
  • Realty Income owns and leases more than 15,000 properties through long-term triple-net agreements that shift taxes, maintenance, and insurance to tenants, supporting predictable cash flows.
  • The REIT pays monthly dividends, including an approximately $0.27 payment due on Dec. 15 that implies about a 5.6% yield, and it has raised its payout 133 times over roughly three decades.