Investing in the stock market over a long-term time horizon can be an excellent way to compound your savings. However, the path toward unlocking significant gains can be marked by numerous ups and downs.
Risk-averse investors or those nearing retirement may prefer dividend stocks over growth stocks, as they offer passive income regardless of the broader market’s performance. But dividends aren’t guaranteed. In fact, some companies will cut their dividends if profits fall, or irregularly raise their dividends even when the company is expanding.
Dividend Kings are in a league of their own when it comes to dividend reliability. These are companies that have raised their dividends every year for at least 50 consecutive years. Given this impressive track record, Dividend Kings are a good starting point for investors seeking to enhance their passive income.