10 Things Every Dividend Investor Should Know

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8. Dividend Stocks Can Generate Higher Returns Than Bonds:

Dividend stocks have historically outperformed bonds as they have the potential for both capital appreciation and dividend income. Whereas bonds typically offer only fixed interest payments. According to a study by Hartford Funds, from 1972 to 2020, the average annual return of dividend-paying stocks in the S&P 500 was 9.25%, while the average annual return of bonds in the Bloomberg Barclays U.S. Aggregate Bond Index was 7.28%.

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