Invest $5,000 in These 4 Dividend Stocks for Long-term Growth
Investing in dividend stocks can provide a steady source of passive income. This approach is appealing to investors, allowing them to earn money while they focus on other pursuits. There are several key reasons why dividend stocks stand out in the stock market. They not only reward shareholders consistently but also contribute significantly to overall market returns.
Research from Hartford Funds and Ned Davis Research shows that dividends have accounted for a considerable portion of total returns in the market. Since 1960, reinvested dividends have contributed 85% of the cumulative returns of the S&P 500. Further comparisons reveal that dividend-paying stocks have outperformed non-dividend payers, with average returns of 9.2% compared to 4.3% over a 50-year period. Additionally, companies that consistently grow their dividends deliver even better annualized returns of 10.2% with lower volatility.
Top Dividend Stocks to Invest $5,000 In
Here are four dividend stocks to consider for long-term growth:
1. BlackRock (BLK)
As the world’s largest asset manager, BlackRock holds a robust market position. Its diversified product offerings include a variety of iShares-branded exchange-traded funds (ETFs). BlackRock’s current price stands at $1,014.72, with a market cap of $166 billion.
- Dividend Yield: 2.04%
- 16 consecutive years of dividend increases
2. Chubb (CB)
Chubb is a prominent player in the global insurance market, offering a comprehensive range of insurance products. Its current stock price is $298.56, with a market cap of $117 billion.
- Dividend Yield: 1.26%
- 32 consecutive years of dividend increases
3. S&P Global (SPGI)
Operating as one of the leading credit rating agencies in the U.S., S&P Global commands a strong market position due to its reliable service. The stock currently trades at $493.56, boasting a market cap of $149 billion.
- Dividend Yield: 0.77%
- 53 years of consecutive dividend increases
4. Ares Capital Corporation (ARCC)
Ares Capital is the largest business development corporation in the U.S. It serves middle-market companies, providing essential loans and structured finance. The stock trades at $19.84, with a market cap of $14 billion.
- Dividend Yield: 9.68%
- Consistent performance over 20 years
Investing in these four dividend stocks can help create a reliable income stream while offering opportunities for long-term growth. The combination of solid financial performance and increasing dividends makes them attractive options for investors looking to invest $5,000 wisely.
