Consider These Dividend-Growth Stocks for Safe Haven Investment

Investments January 9, 2024

Dividend-growth stocks are essentially shares in companies that consistently increase their dividend payments over the years. This is not just a sign of stability, it is an indicator of a company’s confidence in its future growth and its commitment to rewarding shareholders.

Additionally, the ongoing dividend payments provide a source of regular income, which is a significant draw for income-focused investors like retirees.

Mikhail / Pexels / Dividend-growth stocks typically belong to companies with established, resilient business models. In turn, this makes them less susceptible to market fluctuations.

Vanguard Dividend Appreciation ETF (VIG)

Beginning with the Vanguard Dividend Appreciation ETF (VIG), this ETF is a standout for those looking to tap into the world of growing dividends. VIG focuses on companies that have a history of increasing their dividends for at least a decade. It is a diversified fund, meaning it spreads investments across various sectors, mitigating the risk associated with single-industry investing.

Managed by Vanguard, known for its investor-friendly approach and low-cost offerings, VIG is a great way to gain exposure to a broad array of dividend-growing companies. VIG is an excellent choice for investors who prefer a hands-off approach or want to add a diversified income-generating asset to their portfolios.

RPM International (RPM)

Switching gears to RPM International, this company is a shining example in the dividend-growth category. With a diverse portfolio of subsidiaries in sectors ranging from specialty coatings to building materials, RPM has an impressive streak of increasing dividends for over four decades. This consistent growth is a clear indicator of the company’s robust business model and its commitment to shareholder value.

RDNE / Pexels / RPM’s business diversity spans various industries and geographical areas. This helps cushion it against market turbulence.

So, investing in RPM is essentially a vote of confidence in a company that has demonstrated its capacity for growth and adaptation over a lengthy period.

T. Rowe Price Dividend Growth ETF

The T. Rowe Price Dividend Growth ETF presents another compelling avenue for investors interested in dividend growth. This ETF focuses on companies poised for long-term dividend increases rather than those with the highest current yield. This approach often leads to investments in companies that are not just paying dividends but are in a position to sustain and increase them over time.

Managed by the reputable T. Rowe Price, this ETF is diversified across various sectors, emphasizing companies with strong dividend growth records. This strategy aims to provide investors a blend of income, growth potential, and stability.

Liza / Pexels / If you are an investor looking for high-yield portfolios, the T. Rowe Price Dividend Growth ETF is an ideal option for you.

Parting Thoughts

Diving into dividend-growth stocks and ETFs like Vanguard Dividend Appreciation ETF, RPM International, and T. Rowe Price Dividend Growth ETF can be a wise move for those seeking stability and growth in fluctuating markets. These investments offer the dual benefits of potential capital appreciation and a continuous income stream through dividends.

However, it is important to remember that no investment is entirely risk-free. Conducting thorough research and aligning your investments with your financial goals and risk tolerance is always recommended. Diversification remains a key strategy in mitigating risk.

To sum up, dividend-growth stocks and ETFs offer a compelling combination of growth, income, and relative safety, making them attractive options for investors looking for a haven in today’s uncertain market environment. So, if you are considering bolstering your portfolio with resilient, income-generating assets, these dividend growers might just be what you are looking for.