The Power of Dividend Growth — Even When the Yield Looks Small

The Power of Dividend Growth — Even When the Yield Looks Small

A lot of investors glance at a 3% or 4% dividend yield and think, “That’s nice… but it’s not going to change my life.”

But they’re missing something big — because when it comes to building serious long-term wealth with dividends, growth is what really moves the needle.

Take AbbVie (ABBV), for example. It’s not the highest yielder in the market — and that’s fine. Because what makes ABBV special isn’t the size of the check it cuts today… it’s how fast that check has been growing.

Over the past 10 years, ABBV has increased its dividend by more than 250%.

That’s not a typo.

If you’d bought shares when it first spun off from Abbott in 2013, your dividend payout today would be over 3.5x bigger — just from holding and reinvesting.

And that’s the magic of dividend growth. When you focus on companies that consistently raise their payouts — even if the initial yield is small — you create an income stream that compounds faster than most people realize.

Here’s what makes it even better: that growing payout often comes alongside strong price appreciation. ABBV’s share price has more than doubled in the past decade — which means you’re winning on both fronts.

This is exactly the kind of stock we look for in the Dividends Forever Portfolio. We’re not just chasing yield — we’re building durable income engines that keep getting stronger with time.

And the best part? You don’t have to time the market or jump in and out. You just need to own great businesses that pay you more every year — and let the compounding do the rest.

Bottom line?

Dividend growth may not be flashy. But it works — especially if you’ve got time, patience, and a strategy that favors consistency over hype.

— Nate Tucci

P.S. Want more names like ABBV? The full Dividends Forever Portfolio is packed with companies built to grow your income and your capital. You can check it out here.