"There is no question that this market is obsessed with fast growth and flashy returns, something you can learn just by going online and looking at websites like Reddit and other trading forums. The thing is, dividend compounders win by doing the opposite of flashy, as it rewards patience. Instead of chasing the hype, the best dividend earners forget it and quietly reinvest profits through DRIP."
"If I had to choose just one company that helps me sleep well at night, it would be Johnson and Johnson ( NYSE:JNJ). I've had shares since my early investing days, and it's been a steady performer through most market storms. While its current dividend yield is low at 2.6%, it's hard to ignore a quarterly dividend of $1.3000 per share that was last paid out in September and is also planned again for December."
Dividend-paying companies, particularly reliable dividend compounders, reward patience by reinvesting payouts to grow holdings over time. Reinvested dividends buy additional shares, which in turn produce larger future dividends, creating a compounding snowball effect. High-yield stocks can produce extreme gains but are not suitable for every investor; steady dividend growers provide consistent income and stability. Long-term holding and use of DRIP strategies amplify returns and can form a portfolio backbone. Johnson and Johnson exemplifies a steady dividend payer with a current yield around 2.6% and a quarterly dividend of $1.30 per share paid in September and planned again for December.
Read at 24/7 Wall St.
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