Why Dividend Growth Might Belong in Your Portfolio

You may be interested to learn how money is being invested at Beanstox. One component of Beanstox client portfolios is an equity strategy focused on dividend-paying companies. In particular, this strategy focuses on the stocks of companies with a history of paying, and increasing, their dividends over time. Beanstox implements this strategy through the use of ETFs (Exchange Traded Funds). Here are a few reasons why…

Dividend Growth ETFs:

1. Growing income. Obvious? Yes. But who doesn’t want increasing dividend income?
2. Healthy companies. Companies that consistently increase their dividends often have strong balance sheets that allow them to reward their shareholders. This may be an indicator of a bright future for the company.
3. Diversification. Stocks that pay dividends are generally considered safer than non-dividend paying stocks, and using an ETF to own many of them from various industries could reduce the overall risk of your portfolio.
4. Low cost. ETFs typically have lower fees compared to actively managed mutual funds.
5. Performance. Stronger performance historically may be the most compelling reason for investing in Dividend Growth ETFs. Beanstox reinvests your dividends back into your portfolio, taking advantage of the power of compounded returns over time. Below is an example that shows the performance of a popular dividend growth strategy.

Quality Dividend Growth Strategy
Over 200% return in less than 10 years?¹