Sure Dividends: Can Dividends Make You Rich? How to Get Rich Off Dividends

The S&P 500 is set to close an above-average year of returns. Investors who sat through last year’s bear market or even added to their positions while they were down have been rewarded. And with tech stocks leading the market this year, investors may still be focused on growth.

However, that trend is shifting. Tech stocks have slowed down their returns in recent months. And other sectors are starting to trend higher. This constant market rotation indicates an opportunity for income investors.

That’s because these investors can get higher dividend yields buying a stock after it’s been beaten down. And following a path of dividend growth investing over the long term can create sizeable wealth.

Dividend-focused investing takes a lot of the short-term market uncertainty away. A dividend stock may not beat the market most years. But the consistency over time can mean holding up better during a market selloff.

During 2022’s bear market, investors in tech stocks had to stomach losses of 50 percent or more. And many smaller tech companies haven’t fully recovered.

Investors in dividend-focused stocks saw a smaller drop. And they’re likely getting paid more today as corporate earnings can lead to higher dividend payments.

For investors focused on the long-term and looking to grow their wealth without having to constantly trade, dividend stocks can create lasting wealth. Not to mention a stream of income.