Despite a mountain of data to the contrary, there are still critics who say companies paying out dividends are wasting extra cash [Trade of the Day Logo] [View in browser]( [Image of a businessman calculating on his smart phone and a piggy bank ]( Editor's Note: My colleague Marc Lichtenfeld, the Chief Income Strategist over at The Oxford Club, loves dividend stocks more than anyone I know. So today, I've invited him to share his knowledge on the "best of the best" among dividend-paying stocks. I also recommend that you check out Marc's upcoming broadcast on a [little-known stock that has caught the eye of none other than Nvidia]( the newly anointed most valuable company in the world. For months, Marc's been downright giddy about some [big news that's fast approaching]( for this tiny tech stock. [He'll have more details for you at his free event - click here to reserve your spot.]( - Ryan Fitzwater, Publisher --------------------------------------------------------------- ["Dividend stocks beat the pants off of non-dividend-payers."]( Marc Lichtenfeld, Chief Income Strategist, The Oxford Club [Marc Lichtenfeld] Most people would describe me as patient. Generally, things roll off me like a defensive end off of Lamar Jackson. At the poker table, I've been known not to enter a pot for a half-hour if I don't have good cards or the right opportunity to bluff. And I've gone weeks without making a stock or options trade if I don't have the right setups. So, it's no surprise that I'm a dividend investor and a big proponent of dividend growth stocks. You don't buy a dividend stock if you're planning on collecting the payout and then selling it a few weeks later. Owning dividend stocks requires patience. Or does it? There's a type of dividend payer that dramatically outperforms the market over the long term and can lead to big, short-term gains as well. Dividend initiators. When a company pays a dividend for the first time, it is sending a very strong signal to Wall Street that its cash flow is strong and very likely to grow. Most companies don't recklessly part with their cash unless they know they have a lot more coming in the door. So a dividend initiation is a gigantic vote of confidence. And over the long term, owning stocks that initiated dividends pays off big-time. From 1973 to 2023, dividend initiators returned a staggering 14,000%, while companies that didn't pay dividends returned just 743%. For an investment of just $1,000, that's the difference between making $7,430 and making $140,000. Here are some examples of how powerful dividend initiations can be... ["THIS is Where AI Will Have the Biggest Economic Impact... And Where Early Investors Can Make a Killing." - Marc Lichtenfeld]( There's a corner of the AI market set to explode... that investors are completely missing. But not everyone is... The CEO of Nvidia said, that this will be "the next amazing revolution... It will be one of the biggest ever." And the company is putting its money where its mouth is - investing just ahead of a big catalyst that could thrust this opportunity into the spotlight. [On June 27 at 2 p.m. ET]( Marc Lichtenfeld is blowing the lid off of this breaking story - he'll give details about where exactly Nvidia is investing... how you could follow them... why Time Magazine says this revolution is coming faster than we expect... and he'll be making his biggest and boldest prediction yet. [GO HERE to claim a free spot to this exclusive event.]( Just look at Covenant Logistics (Nasdaq: CVLG). It initiated a dividend in January 2022. And in the next year and a half, its stock more than doubled. [Covenant Logistics Doubled After Initiating a Dividend]( Same with Ferrari (NYSE: RACE)... It initiated a dividend in May 2016... And its stock is up 975% since. [Ferrari Raced Up by 11x After Initiating a Dividend]( And then there's Nvidia (Nasdaq: NVDA). Since it initiated a dividend in 2013... Its stock is up an extremely rare 36,000%! [Nvidia Exploded Up 36,000% After Initiating a Dividend]( But despite the mountain of data to the contrary, there are still critics who say companies that pay out dividends to shareholders are wasting their extra cash. As President Joe Biden would say, "That's a bunch of malarkey!" Let's look at why that argument doesn't hold water. Dividends = Stronger Earnings Studies have shown that companies that pay dividends have more reliable earnings than those that don't. Douglas J. Skinner and Eugene F. Soltes, professors at the University of Chicago and Harvard University, respectively, concluded, "We find that the reported earnings of dividend-paying firms are more persistent than those of other firms and that this relationship is remarkably stable over time. We also find that dividend payers are less likely to report losses and those losses that they do report tend to be transitory losses driven by special items." So non-dividend-paying companies may use their cash to acquire growth, but dividend-paying companies have stronger and more consistent earnings. And a vital rule of investing is that stock prices follow earnings. If earnings are better and more reliable for dividend-paying companies, that should mean dividend-paying companies' stocks perform better. And we know that they do. In fact, dividend stocks beat the pants off of non-dividend-payers. So the next time a friend says a company should have better things to do with its cash than pay dividends, wish them luck with their investing. Just keep in mind that you'll likely be the one picking up the tab for lunch in a few years, because you'll be the one who can afford it. [Logo]
YOUR ACTION PLAN Dividend initiations are some of my favorite "trigger events" to look for as I search for stocks that are about to soar. I'll be discussing some of my other favorite trigger events during an [urgent broadcast on Thursday, June 27.]( Why so urgent, you ask? I recently uncovered a fascinating company that's on track to experience a trigger event as soon as July 1... so I want to get the word out to as many people as possible before the window of opportunity closes. Hint: Nvidia revealed recently that it has invested in five artificial intelligence stocks... and this is one of them. (Be careful, though... After you learn all my secrets to trading trigger events, you might be picking up the tab at lunch a lot more often!) [Go here to reserve your free spot at this exclusive event.]( --------------------------------------------------------------- INSIGHTS YOU MAY HAVE MISSED [Heading for New Highs?]( [Heading for New Highs?]( [Image of the year 2024 with a dollar sign replacing the number 2]( [Looking Back on my Big 2023 Prediction]( [Image of a robot looking at stock displays]( [My #1 Trick to Avoid AI Land Mines]( [Image of a surfer surfing a wave]( [Big Kahuna Trading!]( [Millionaire trader: "Throw out your stock scanners. Use ONE ticker for BIG potential payouts."]( [Crazy stressed businessman destroying his desk and laptop with a baseball bat, job burnout concept]( Since August, Millionaire Trader Nate Bear has been DOMINATING the markets with a revolutionary strategy that involves ignoring 8,251 of the 8,252 publicly traded stocks. [Watch His Demonstration Here]( [Instagram](
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