Core Insights - Dividend stocks have historically provided significant returns, with a $100 investment growing to approximately $8,750 over 50 years, compared to less than $850 for non-payers [2] - Companies that consistently increase their dividends yield even higher returns, with a $100 investment growing to over $14,100, versus around $2,790 for those with unchanged dividends [2] Company Summaries - Realty Income: This REIT has increased its dividend 128 times since 1994, maintaining 30 consecutive years of growth and 109 quarters in a row. It currently offers a dividend yield of 5.8% and has a conservative payout ratio of around 75% of its adjusted funds from operations (FFO), providing financial flexibility for portfolio expansion [4][5][6] - Brookfield Infrastructure: This company has raised its dividend annually for 15 years, with a compound annual growth rate of 9%. It anticipates future growth of its 4% yield at a rate of 5% to 9% annually, supported by organic growth drivers and a strong financial profile with a payout ratio of 60% to 70% of FFO [7][8][9] - Medtronic: This medical technology firm has increased its dividend for 47 consecutive years, with a compound annual growth rate of 16%. It currently offers a 3.1% yield and returned $5.5 billion to shareholders in its 2024 fiscal year, primarily through dividends [10][11] Investment Recommendations - Realty Income, Brookfield Infrastructure, and Medtronic are highlighted as strong dividend stocks due to their excellent records of dividend growth, making them attractive investment options [12]
The Smartest Dividend Stocks to Buy With $100 Right Now