Over the last three years, diversification has fallen out of fashion. When investors can make 20% or higher returns in technology stocks and even more from the Magnificent 7, the idea of investing in low-growth dividend stocks loses some appeal. However, in 2025 investors have been reminded that low growth is better than no growth. And they’re looking for the safety of these stocks to weather the current storm.
The key to investing in dividend stocks is to understand the idea of total return. That means paying attention to stock price growth as well as the growth you get from dividends. For investors who reinvest their dividends, those gains can be truly impressive.
