When you reinvest dividend income, the magic of compounding can turbocharge your returns. Over the last century, dividend payments have accounted for about 40% of the total annualized return of the S&P 500. In addition, from 1973 to 2022, S&P 500 dividend stocks have delivered twice the return of stocks that have paid no dividends.
However, a good dividend cannot make up for an underperforming stock. Similarly, a high dividend yield could be a trap that covers up erratic payouts, poor performance or minimal growth prospects. To help you find reliable dividend investments, Forbes Advisor has identified 10 of the best dividend stocks available in the U.S. stock market today.
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