One Sector Has Underperformed Massively: These 4 Blue-Chip Dividend Giants Are Huge 2025 Plays

Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contributed 68%. Therefore, sustainable dividend income and capital appreciation potential are essential for total return expectations.

A study from Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the past half-century (1973-2023), more than double the annualized return for non-payers (3.95%).

One sector that has always been a favorite of growth and income investors has languished and underperformed the S&P 500 by a stunning 21 points. History shows us that when this happens, the healthcare sector has outperformed in a big way.

Dividend stocks provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner's continuous active participation.

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