T. Rowe Price explains why sticking with a dividend growth strategy can provide useful diversification while creating an opportunity to compound returns over the long term.
Date published: November 2025
Why dividend growth investing has staying power
T. Rowe Price
Tom Huber, Tamzin Manning
Research
6 Pages
Key Takeaways
Market Concentration: A top-heavy U.S. equity market and the drift toward a narrower approach to growth investing may not reflect the widening range of long-term outcomes.
Dividend Growers: Dividend growers have posted solid returns in bad and good markets, potentially providing useful ballast while compounding long-term value. A strategy focused on dividend growers can allow for more balanced exposure to a greater variety of growth stories, even in a highly concentrated market.
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