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This Strategy Can Grant Long-Term Wealth

Editor’s Note: Inflation… recession… bear markets… All these things are making headlines and driving worries about the economy and our financial accounts. That’s why we’re sharing today’s guest essay…

Former real estate developer Brad Thomas has three decades of investment experience… And he learned some hard lessons during the last financial crisis in 2008. He had to rebuild from the ground up – all while focusing on long-term value rather than instant gratification.

And that’s the same path he sees for succeeding in the current environment. On Wednesday, October 19, at 8 p.m. ET, Brad will share his strategy for earning investment income consistently, in all market conditions. He’ll also bring along a special guest who’s collected more than $45K in income since they began using this strategy in 2020.

Even better, Brad will share a free recession-proof play he believes could double your money with everyone who attends his event.

If you’re interested in learning more about Brad’s strategy, go right here to sign up for free.


No matter how you slice it, fear abounds.

2022 is shaping up to be one of the worst years in recent memory for investors, with markets recently hitting 52-week lows.

  • The Dow Jones recently sank into bear market territory, selling off by more than 20%.

  • The S&P 500 recently fell 25% from its highs.

  • And the Nasdaq has been the worst-performing index on the year, selling off more than 30% at its lowest.

Furthermore, the bond market has sold off, meaning fixed income isn’t working as a hedge either. In fact, this year has been the worst in almost a half-century for mixed stock and bond market returns.

It doesn’t end there… Mortgage rates recently rose above the 7% mark, hitting their highest levels since the 2008/2009 financial crisis. Such a high yield on the average 30-year fixed mortgage has sparked fears of another housing crisis.

And it’s not looking great for inflation, either. OPEC (Organization of the Petroleum Exporting Countries) just announced it’s cutting oil production. This will cause energy prices to spike and ensure inflation will stay near 40-year highs for a while, as it has done in recent months.

So whether you’re an investor or not… This cycle of high inflation, the Fed raising interest rates to combat it, and poor market performance has left most people worrying about their finances.

I’m seeing all this impact the psyche of investors that I speak to daily.

They have questions, concerns, anxiety, and outright fear for their financial futures… And with so much darkness filling up the world today, they don’t know where to look for hope.

Thankfully, I have an answer.

We don’t want to add to the sense of doom and gloom. My analysts and I are here to offer some clarity during anxious times like these with a simple solution…

A steady, secure, and reliable stream of passive income can do wonders for a troubled mind during periods shrouded by fear and uncertainty.

My dividend income allows me to sleep well at night, no matter what sort of “scares” the media casts my way. This passive income stream continues to rise, regardless of what the major averages are doing.

And I’m not just saying that. Today, I’ll break down how this has proven to hold true over the past few decades. And why I’m comfortable sticking to this strategy for future decades.

By accumulating dividend stocks, I’ll show how you can also achieve your financial goals in the face of market turbulence and fear. And I’ll show you how you can get the name of one of my favorite dividend payers – for free.

Investments Have Beaten the Market for Decades

Financial firm Hartford Funds recently published a study analyzing the performance of S&P 500 companies – including dividend stocks – over two periods. And here’s how the results stacked up…

Starting with a $10,000 investment in the S&P 500 in 1960, you could have made $795,823 by the end of 2021.

Those returns equate to a 7.4% compound annual growth rate (CAGR) over 61 years.

That’s not bad. It’s enough to slowly and steadily make most investors who are diligently saving and investing rich.

But data shows focusing on dividend growers can accelerate this process in a major way.

Looking at total returns during the same 1960-2021 period with dividend reinvestment turned on, that original $10,000 investment turns into $4,949,663.

That brings CAGR over that 61-year CAGR to 10.7%. Now, the difference between a 7.4% CAGR and 10.7% might not seem like much… But over a long period, the total return is more than 6.2x higher.

In this case, that’s a difference over $4 million, to be exact.

Furthermore, the Hartford study analyzed the S&P 500 holdings during the 48-year period between 1974 and 2021. Here’s what that data showed for stocks that pay dividends… and those that don’t:

  • The equal weighted S&P 500 index generated annualized returns of 8.2% over that time.

  • During this same period, non-dividend payers within the S&P 500 underperformed the broader index almost by a half, producing annualized returns of just 4.8%.

  • On the other hand, dividend payers outperformed the index, posting returns of 9.6%.

  • And most impressively, dividend growers posted returns of 10.7%.

In other words, S&P 500 dividend growers generated a total return CAGR more than double that of non-dividend payers over the period studied.

This shows the importance of dividends to generate wealth over the long term.

Always Partner With Winners

Now, do these findings still matter after the market crash of 2022?

Well, the S&P 500 is down nearly 25% so far this year.

Meanwhile, the Vanguard Dividend Appreciation ETF (VIG) is down by 20%. And the Schwab U.S. Dividend ETF (SCHD) is down by 16%.

Dividend growth stocks have continued to outperform the broader market throughout the recent sell-off.

And moving forward, I expect this trend to remain in place.

I’ve learned that dividend growth is paramount to long-term success in the markets for years. This isn’t an opinion… it’s backed up by fundamental metrics and historical returns.

So if you’re hoping to conquer current market conditions and thrive throughout this period of unprecedented uncertainty… all you need to do is partner with winners.

And those are blue-chip dividend growth stocks. By owning shares, you can sit back and allow their business models to generate wealth… and growing dividends.

Right now is a great time to pick up some of those shares on the cheap while the market remains volatile.

That’s why I’m putting together a special presentation on Wednesday, October 19 at 8 p.m. ET. I’ll show you a unique strategy to find income in volatile markets. All with the same signature levels of safety and reliability we look for at Wide Moat Research.

By joining me next Wednesday evening, you’ll also get the name of my favorite recession-proof play in the market right now – free. I believe this play could double your returns in the years ahead. So it’s worth attending just to get that name.

You can sign up here to join me.

Happy SWAN (sleep well at night) investing,

Brad Thomas
Editor, Intelligent Income Daily