Over the past 50 years, dividend stocks have outperformed non-dividend stocks by more than two-to-one, achieving a 9.2% annualized total return compared to 4.3%, based on data from Ned Davis Research and Hartford Funds. The best-performing dividend stocks, those that consistently increase payouts, yield an average return of 10.2% annually.
Currently highlighted dividend growth stocks include Prologis (NYSE: PLD), which has a dividend yield of 3.7% and has increased its payout by 13% annually over the last five years. Invitation Homes (NYSE: INVH), focusing on single-family rentals, has a yield of 3.4% and has expanded its portfolio significantly since its public launch in 2017. Another notable is NNN REIT (NYSE: NNN), with a yield of 5.5% and a record of increasing dividends for 35 consecutive years.
Investing $2,000 in this trio could result in up to $110 in annual dividend income, supported by continuous growth in rental income and portfolio expansion.
