If the recent market action has you worried, I understand. But I also have a solution…one that I know works from decades of personal experience. I’m talking about some of the oldest, most boring stocks on the planet — dividend-paying firms from the consumer staples, healthcare, and utility sectors, observes Nilus Mattive, editor of Safe Money Report.
These are the types of investments that not only weather bad conditions quite well, but that can even go UP as everything else is falling sharply. And that’s for two main reasons …
#1. These types of businesses provide items people need, no matter what’s happening in the world or the economy.
#2. Because they produce consistent profits, they also tend to pay out steady (and often rising) dividends.
The outperformance can be dramatic when you look at individual stocks. Consider a study from Ned Davis Research and Hartford Funds from 1973 to 2024.
It found that over 50 years, companies that don’t pay dividends produced a total return of 799%. Meanwwhile, companies that initiate and grow dividends produced returns of 15,774%. A return like that turns a $50,000 portfolio into almost $8 million.
This is why I have continued to favor dividend-paying stocks all the way. You can get broad exposure to dividend stocks through various ETFs like the Vanguard Dividend Appreciation ETF (VIG).
