Dividend stocks have been the backbone of market returns for over a century, contributing roughly two-thirds of total returns since 1900, according to a report by the Hartford Funds. Companies that consistently raise their dividends have been particularly strong performers, thanks to their ability to generate steady revenue growth and strong free cash flows across different market cycles.
These dividend growers share several important characteristics that make them compelling long-term investments. They typically maintain conservative payout ratios, possess durable competitive advantages in their respective industries, and generate reliable cash flows that can support continued dividend increases.
This post originally appeared at The Motley Fool.