What's better than payday? A payday that you didn't have to work for. Owning dividend-paying stocks offer just that: a business working for you in the background, the fruits of which are realized via a quarterly paycheck. Even better than a dividend-paying company, though, is a business that spins excess cash off to investors and delivers business growth along the way. Such companies are likely to continue rewarding owners for a very long time.
It can be a potent combination, too, one that has averaged total returns (stock appreciation plus dividend payments) in the low double digits over the long term. In the search for great dividend payers and pay raisers, Starbucks (NASDAQ:SBUX), Store Capital (NYSE:STOR), and Hasbro (NASDAQ:HAS) belong on the list of must-haves.
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