3 Steps to Help Pad Your Dividend Returns

I often get asked where I’m investing my retirement money. And these days, I’m also asked if this is even an appropriate time to buy stocks!

Well, I personally am buying. For starters, my 401(K) runs on autopilot. Every month, my contribution (and “Brett Inc.” company match) is plowed into Vanguard’s Dividend Growth Fund (VDIGX). No diversification, no market timing–100% into VDIGX.

Why this fund? Because in my plan, I have to choose from a set list Vanguard funds. And I’m naturally looking for an emphasis on dividend growth because I know it’s the path to 10%+ returns every year, a wealth-creating snowball!

As far as 401(K) options go, VDIGX is a good one. It’s outperformed the S&P 64% to 57% over the last five years, largely thanks to its “pullback-proof” qualities. It really shines in turbulent years like ours!

Now before you go looking for VDIGX, let’s talk about two important things:

Read the full article at Forbes.

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