RJ Hamster
💡 How Effective Is the MaxDividends Strategy for Building…
💡 How Effective Is the MaxDividends Strategy for Building a Growing Passive Income?Analyzing Detailed Historical Data and Research on Long-Term Performance
MaxDividends Mission: Helping people build growing passive income, retire early, and live off dividends.
Analyzing Detailed Historical Data and Research on Long-Term PerformanceRecently, analysts at Hartford Funds, in collaboration with Ned Davis Research, updated their comprehensive study on dividend stocks, “The Power of Dividends: Past, Present, and Future.” This study examined the performance and volatility of dividend-paying stocks versus non-payers over a 50-year period (1973–2023). Here’s what they found:
Why Dividends MatterSuccessful investing is about building wealth consistently and reliably—and dividend-paying companies are among the most dependable ways to achieve that. These companies are not only profitable but also transparent, rewarding their shareholders with real, recurring cash flow. Over time, they tend to grow in value, benefiting patient investors. Before committing to any investment strategy, my team and I conducted extensive research on the best ways to invest in high-quality, dividend-paying stocks. Here’s why we believe this approach is a game changer:
Investing in strong, dividend-paying companies isn’t just a strategy—it’s a proven path to financial independence. By focusing on businesses that reward shareholders consistently, you can build a growing passive income stream while enjoying greater stability and peace of mind in your portfolio. “Anybody who invested in growth stocks last year, for instance, would have watched their investment go up, up , up, then come crashing back down in January. But dividends can’t be clawed back, once they’re paid out, that gain is permanent.” An experienced but anonymous investor on Reddit 💡 How Effective Is the MaxDividends Strategy for Building a Growing Passive Income?The Numbers Speak for Themselves What can you expect from the MaxDividends Strategy? Let’s dive into the research: Fact #1: Dividend Stability
We conducted a 25-year analysis of both U.S. and global stock markets, focusing on the reliability of dividend payments from companies selected using the MaxDividends strategy. The results confirm the power of investing in stable, dividend-paying businesses. Fact #2: Growing Dividend Payments96% of portfolios built using the MaxDividends Strategy paid more dividends in the following year compared to the purchase year—without any additional investments. To test this, we analyzed 50 random 1-year periods from 1999 to 2024. For each period, we selected the Top 10 stocks based on the MaxDividends Strategy. We then compared the dividends these companies paid at the time of purchase with the dividends they paid one year later. The results? In all 50 cases, the dividend amount increased after one year—without reinvesting dividends. This confirms the power of investing in companies with a strong dividend growth track record: your income naturally increases over time, creating a steadily growing passive income stream.
Consistent Dividend Growth – Even During Market CrashesOn average, dividend payments from MaxDividends stocks increased by 9.63% year-over-year. That means if you started with $100 in dividends, the following year you would have $109.63—without any reinvestment. How Did MaxDividends Stocks Perform During Market Crashes?Even in times of major economic downturns, MaxDividends companies demonstrated exceptional resilience: 📉 2008 Recession (159 companies matched MaxDividends criteria):
📉 2015 Stock Market Selloff (137 companies matched MaxDividends criteria):
📉 2020 Coronavirus Crash (129 companies matched MaxDividends criteria):
These numbers prove that even during severe market downturns, the vast majority of MaxDividends stocks continued paying—and even increasing—dividends. This is the kind of reliability and financial security that makes dividend investing one of the most powerful wealth-building strategies. Fact #3: Long-Term Performance
We conducted over 100 single-period tests and 250+ rolling tests to analyze the performance of the MaxDividends strategy. 1️⃣ We bought the top MaxDividends stocks, held them for a year, and reinvested the dividends.Here’s what we found: The average results of these tests are shown in the screenshot below. The MaxDividends reinvestment-adjusted return is +12.09% per year over a 20-year period, which is 2.18% higher than the overall market’s return during the same time frame. This highlights how the MaxDividends strategy not only outperforms the broader market but also leverages the power of dividend reinvestment, helping to accelerate wealth accumulation over the long term.
2️⃣ In another test, we used the MaxDividends app strategy, purchasing the top MaxDividends stocks and only selling companies if they:
We ran rolling tests across 65 different scenarios. Here’s what we found:
These results demonstrate that the MaxDividends strategy not only delivers superior returns over time, but it also offers lower volatility and less risk exposure compared to the broader market. By focusing on reliable, high-quality dividend stocks, investors can enjoy strong performance while minimizing downside risk.
ConclusionOur comprehensive tests show that selecting reliable, high-dividend stocks can create a strong foundation for both capital growth and passive income. With the MaxDividends strategy, you can benefit from predictable, growing dividends and long-term stability. Best regards, Ready to Give It a Try?Check Your Subsription Status & Upgrade to Premium. MaxDividends Community
We follow our time-tested strategy for tapping into overlooked dividend plays that can make your portfolio more resistant to recessions and other market panics and pack on consistent gains for years to come. MaxDividends Idea“Retire early and live on dividends. Because no one wants to work forever.” 👉 My Own High Yield Dividend Growth Story With MaxDividends Community you’ll always be part of a winning team and stop viewing the future as an uncertainty. Worry will fade, replaced by confidence and peace of mind. You’ll focus on doing what you love while your passive income continues to grow. Choosing a strong environment is the key to achieving outstanding results. If you surround yourself with people who dream bigger than you, you increase your chances of reaching greater heights. Surround yourself only with those who will support you on your path to success. Ready to Give It a Try?Check Your Subsription Status & Upgrade to Premium. If you have any questions, feel free to email me at: max@maxdividends.app MaxDividends is a Bestseller on Substack!Hundreds of premium members have already discovered the benefits of the community and app, earning passive income through dividends with MaxDividends. Their passive income keeps growing!
⭐️⭐️⭐️⭐️⭐️What You’ll Get by Joining MaxDividends PremiumThe most important thing our MaxDividends community members value us for Freedom & IndependenceNo boss, no schedules—complete control over your time. Ability to work on passion projects or simply enjoy life without financial stress. Passive Income That Grows Over TimeDividend-paying stocks provide a steady, rising income stream. Unlike traditional retirement funds, you don’t need to sell assets to cover expenses. Protection Against InflationDividend growth investing ensures your income keeps pace with inflation. Companies that increase payouts help maintain purchasing power. Stress-Free InvestingNo need for active trading or daily market monitoring. Long-term buy-and-hold strategy minimizes stress and decision fatigue. More Time for Family & Personal GoalsSpend more time with loved ones instead of working 40+ hours a week. Pursue hobbies, travel, and personal development without financial pressure. Health & Well-Being BenefitsLess work stress leads to better mental and physical health. More time for fitness, proper sleep, and healthier lifestyle choices. Avoiding the Corporate Rat RaceEscape office politics, toxic work environments, and endless meetings. Focus on meaningful activities instead of chasing promotions and pay raises. Living Life on Your Own TermsAbility to relocate, slow travel, or move to a lower-cost-of-living area. No restrictions on how you spend your day—whether it’s reading, volunteering, or building a new skill. Leaving a LegacyBuild generational wealth and leave assets for your family. Teach the next generation financial independence by leading by example. Financial Security & Peace of MindA well-built dividend portfolio provides stability even during economic downturns. No fear of outliving your savings—passive income keeps flowing. Many who already joined say it’s the best financial decision they’ve ever made—because money becomes a tool for freedom, not a source of stress. Ready to Give It a Try?Check Your Subsription Status & Upgrade to Premium. If you have any questions, feel free to email me at: max@maxdividends.app We’re in the Top Financial Blogs on Substack! 💪MaxDividends continues to be recognized for its consistent effort, commitment to quality, and the loyalty of its growing community of partners.
With Max Dividends Premium, you unlock:🔹 MaxDividends Stocks of the WeekTop 10 undervalued, high-yield, ultra-high yield, and dividend growth stocks every week. Bonus: Full access to the updated weekly list of MaxDividends stocks—boost your passive income and start living off dividends. 🔹 Top Dividend InsightsGet exclusive, high-quality dividend investment ideas and insights, handpicked to help you crush your financial goals, retire early, and live off dividends. 🔹 Roadmap to Live Off DividendsA step-by-step weekly guide to achieving financial freedom through dividend investing. 🔹 Easy Peasy: Build Your MaxDividends PortfolioReady-made MaxDividends stock sets starting at $300, $500, or $1000 each week—making it easier to build a strong dividend portfolio. 🔹 MaxDividends Business OverviewDeep dives into the top dividend stocks we hold, including key metrics, business insights, perspectives, and expert consensus. 🔹 MaxDividends Portfolio: Goal → 120 Months to $12K/MonthMy personal dividend portfolios with weekly updates, changes, and insights. 🔹 Community of Like-Minded InvestorsStay connected with me and other MaxDividends followers. Join the MaxDividends community chat to discuss ideas, share insights, set goals, and stay motivated. Support, accountability, and like-minded investors—all in one place! 🔹 Sunday Coffee ☕️My personal life & business column, where I share:
But That’s Just The Beginning!🎁 We’re giving you our MaxDividends App — FREE when you join Premium on Substack. As an early adopter, you’ll not only get free access but also the chance to shape the product with your feedback, and our full support on your dividend journey. This is your opportunity to track your passive income, optimize your portfolio, and be part of building the ultimate dividend tool.
🟢 What ELSE You’ll GetTop Dividend IdeasUnlock exclusive, high-quality dividend investment ideas available only for Premium members. These ideas are carefully curated to maximize returns, provide growing income, and accelerate your journey to financial freedom and early retirement. By upgrading to Premium, you’ll gain access to:
Undervalued Dividend ListsWith Premium access, you’ll get:
These lists highlight the most promising undervalued dividend stocks with strong growth potential, helping you maximize returns on your investment. Dividend InsightsGain exclusive insights:
These carefully researched ideas will guide you in making smart, informed decisions to build wealth with dividends. If you have any questions, feel free to email me at: max@maxdividends.app 🟢 And even MORE!Unlock the best dividend tools available, created by the MaxDividends Team:
💎 MaxDividends Premium gives you more than just tools — it gives you clarity. You’ll know which stocks are worth your money and which to avoid, helping you build a stronger portfolio, grow reliable passive income, and reach financial freedom faster. Shared by 230+ Financial Bloggers on SubstackThe European Value Investor ⭐️⭐️⭐️⭐️⭐️“If you are interested in dividend strategies or passive income strategies, this Substack ia great! Its worth a visit“ Johan Lunau – The Long View ⭐️⭐️⭐️⭐️⭐️“Practical dividend focus. Saving for retirement.“ Shailesh Kumar – The Astute Investor’s Calculus ⭐️⭐️⭐️⭐️⭐️“Love the concept and the execution. If you are into building a portfolio that will generate ever growing income for you, subscribe to Max Dividends. I did.“ MS Cliff Notes ⭐️⭐️⭐️⭐️⭐️“A useful substack for those that invest in stocks that pay dividends or are looking to get into such a strategy. Includes education and actionable ideas.“ Timothy Assi – Panic Drop ⭐️⭐️⭐️⭐️⭐️“Great for helling you pick up high-yield dividend growth stocks“ 230+ authors and pros already recommend MaxDividends! Trusted by 100,000+ subscribers!
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*Disclaimer: This article reflects the author’s personal opinions and is intended for educational and entertainment purposes only. It does not constitute financial advice in any form. Always do your own research and consult a licensed financial advisor. The author may hold positions in some of the stocks mentioned, in line with the views expressed. This is a disclosure, not a recommendation to buy or sell any securities.As a reader of MaxDividends, you agree to our disclaimer. You can read the full disclaimer here.📖 Now on Amazon!The 5 Timeless Rules of Dividend Investing — available in paperback. 💡 Prefer digital? Grab the free PDF:How to Build Growing Passive Income, Live Off Dividends, Retire Early and Leave a Legacy You’re currently a free subscriber to Max Dividends. For the full experience, upgrade your subscription.
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