One of the best things about using equities to derive a portion of your income is that dividends can and do grow over time.
Unlike bonds, as firms make more money and have rising cash flows, they generally share the wealth with their investors. And throughout market history, they’ve shared that wealth at about a 7% annual increase. But lately, they’ve been doing a whole heck of a lot more. Last year was one for the record books in terms of dividend growth, payouts and equity income.
The best part is, stocks are set to do it again this year.
Thanks to a variety of factors across the globe, dividends are once again set to rise throughout 2018. For investors, these truly are the best of times, which means that dividend stocks are the way to go when it comes to finding much needed income.