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Keep calm with dividend growth investing

Dividend growth investing (or DGI) is an investing style where investor looks for companies with stable and growing dividend payments which ensures that DGI investors generate passive income from their investments regardless of stock price changes.

Are you thinking about what kind of investor you want to be? Let's explore the reasons why become a dividend growth investor and why this approach gaining popularity in recent years.

1) Dividend Growth Stocks Have Outperformed the Stock Market

All investors want to beat the S&P500 but only a small percent of them will succeed. If you want to beat the market you have two possibilities, speculate and actively trade and hope you will be lucky or go for dividend-paying stocks. Dividend-growing stocks are historically outperforming the market and have lower volatility in general.

See all dividend aristocrats (companies with 50+ dividend history)

2) It’s long-term thinking

Short-term gain means nothing. You will earn money and spend it and then repeat the cycle spending more and more time trying to keep your profits. Dividend growth investing is all about the future and having passive dividend income which you can use either for buying more stocks and accumulating wealth or use it for paying your bills.

See blue-chip dividend stocks (top companies in their sector - premium list)

3) It is fun and simple

Let's be sentimental for a moment. Buying a stock because you want to be part of the company in the long-run (and share its profits!) is more meaningful than short-term thinking and sweating about daily stock price changes. It also feels extremely good to receive dividends. Dividend growth investing reinforcing your investing habits and helping you to keep on track with saving and distributing money wisely. Simplicity is also a big factor here, the whole strategy could be summarized in one sentence and it is easy to understand:

"Buy companies which are paying a dividend, been increasing its dividends for a longer time and still have the potential for growth."

If you are interested in all this, try our dividend growth investing calculator and see how DGI works in the long term.

Dividend investing doesn’t have to be hard work. We create tools for like-minded investors which help you make better decisions.

DIVIDEND CALCULATOR
Estimate future earnings
WATCHLIST
Stock watchlist designed for dividend investors