Dividend growth stocks have a proven track record as value creators. Several factors contribute to this trend. First, Wall Street views a rapidly growing dividend as a positive sign for the underlying business's health.
Academic studies support this notion, revealing that companies with increasing dividends tend to have stronger earnings power. Additionally, investing in stocks with growing distributions and reinvesting those cash or stock payouts can lead to significant benefits through the power of compounding. When a rising dividend payout is automatically reinvested, it amplifies returns, creating a snowball effect.
Which dividend growth stocks are worth buying and holding for the long term? Look no further than digital payments giant Visa ( V -0.78% ) and retail powerhouse Target ( TGT 0.43% ) .
Both companies are known for consistently raising their dividend payments at impressive rates. With robust free cash flows and well-established brands, these two stocks are solid choices for investors. Read on to find out more.
Visa Visa is a dominant force in the global payments-technology industry, facilitating monetary transactions across a vast network that spans over 200 countries and territories. Its platform serves a diverse clientele, including consumers, merchants, financial institutions, and government bodies. The company is capitalizing on the worldwide transition from cash to digital payments, significantly boosting its financial metrics.
In the past five years, Visa .
