The Top Stocks of the Next 50 Yearshttp://www.fool.com/investing/dividends-income/2007/01/26/the-top-stocks-of-the-next-50-years.aspx John Reeves (TMFBane)
January 26, 2007
Is it possible to determine the top-performing stocks of the next half-century? Before looking into the future, we need to consider the past. So let's start at the very beginning (as Julie Andrews might say).
Fishing in a well-stocked pond
The key to the amazing returns of these stocks was reinvested dividends. This is a theme we've covered in numerous articles here at the Fool, but that insight is worth emphasizing. If we are searching for top stocks for a time frame of 50 years, we need to look at dividend-paying stocks.
One place to begin our search might be the Mergent Dividend Achievers Select Index, whose constituents are U.S.-based companies that have all increased their annual dividend payments for 10 or more consecutive years. Since 1996, the index has returned 11.81% per year on average, which compares very favorably with the S&P 500's 8.43% over that time.
The magnificent seven