"Maximizing Dividend Income: Choosing Quality Compounders Over High-Yield Stocks"
Investors seeking long-term income should consider dividend compounders, which are stocks of companies with a history of significantly increasing their payouts over time. High current dividend yields may indicate potential risks, as some stocks with high yields are trading at relatively low valuations due to expected dividend cuts. Screening the S&P 500 for companies that have increased their dividends the most over the past five years reveals potential opportunities for income growth and total return, with examples such as Goldman Sachs, Freeport-McMoRan, and Newmont Corp. These dividend compounders have outperformed the S&P 500 on a total-return basis, making them attractive options for income hunters with a long-term investment horizon.