Top Dividend Aristocrats: How I Would Invest $100,000 for Maximum Returns
Money | July 6, 2024, 12:43 a.m.
In his article "da-kuk," Sam Kovacs explores the limitations of relying solely on Dividend Aristocrats for long-term investing. While these stocks have a history of strong dividend growth, recent examples like 3M and AT&T show their vulnerability. Kovacs suggests a more nuanced approach, focusing on a stock's ability and willingness to grow dividends rather than just historical performance.
He offers a portfolio of 10 carefully selected stocks, emphasizing diversification and dividend potential. Kovacs uses a strategic framework to evaluate each stock, advising investors to buy low, sell high, and get paid to wait. By reinvesting dividends at a 7% growth rate, his hypothetical portfolio could yield significant returns over time. However, he recommends a more proactive strategy to maximize dividend income and future success.
Ultimately, Kovacs urges investors to look beyond Dividend Aristocrats and consider factors like valuation and growth potential for a more robust investment approach.