Core Insights - Investing $100 in dividend growth stocks can lead to substantial long-term gains, with historical data showing significant returns compared to other investment types [2][3][7] Investment Returns - Companies that increased their dividends provided an average annual return of 10.2% over the last 50 years, outperforming those with no dividend increases (6.8%) and non-dividend payers (4.3%) [2] - A $100 investment in dividend growth stocks 50 years ago would have grown to nearly $15,900, while the same amount in companies with stable dividends would be about $3,000, and non-payers would yield less than $900 [3] Investment Vehicles - One effective way to invest in high-returning dividend growth stocks is through exchange-traded funds (ETFs), such as the Schwab U.S. Dividend Equity ETF, which focuses on high-quality dividend stocks [4] - The Schwab U.S. Dividend Equity ETF has delivered an average annualized total return of over 11% since its inception in 2011, indicating strong performance in the dividend growth sector [6]
The $100 Investment That Could Change Everything
The Motley Fool·2025-11-29 07:15