| Increase Your Buying Power It has to do with my specific strategy for investing in the best dividend stocks. It's called the 10-11-12 System, and it is designed to achieve 11% yields and/or 12% average annual total returns within 10 years. The entire goal of the model portfolios in The Oxford Income Letter is to generate solid income today - and even more tomorrow. Typically, the stocks of companies that raise their dividends go higher and outperform the market. The secret sauce is dividend growth. The companies that I recommend in The Oxford Income Letter's portfolios have long histories of raising their dividends every year - usually by a meaningful amount, such as 10% or more. Think about what that does for an investor. If inflation sits at 2.4% per year, what costs $1,000 today will cost $1,126 in five years and $1,268 in 10. If inflation returns to the historical average rate of 3.4% per year, $1,000 worth of goods will cost $1,182 in five years and $1,397 in 10. That means the 10% dividend raiser easily beats inflation. It actually increases your buying power, improving your quality of life and ability to save. An investor who receives $1,000 in dividends today and whose dividend payout increases 10% per year receives $1,610 in five years and $2,594 in 10. The stock that I mentioned on CNBC was and is a great company - a leading telecommunications company with growing margins and earnings. It had paid a dividend every year for decades and consistently raised it. But it didn't have impressive dividend growth, so it was not likely to help income investors get where they want to go. However, a stock that has a similar starting yield to that company's but grows its dividend by 10% per year will yield 9.9% in 10 years. A $10,000 investment in even a 4% dividend grower will generate only $597 in income in 10 years, while the same investment in a stock with 10% dividend growth will spin off $990. That's a big difference. Best Buy (NYSE: BBY) is a great example of the kind of dividend-growing stock I'm talking about. The company has raised its dividend by an average of 11% per year over the past five years. While Best Buy's 4.2% yield today may not knock your socks off, if the company maintains an 11% dividend growth rate, its yield will be much more attractive a few years from now. Here's the bottom line: Buy stocks with sizable and safe yields if you're most focused on short-term income. But if you're looking for a way to ensure your investments generate a significant amount of income in the future, be sure to stick with dividend growers that raise their dividends by meaningful amounts. Good investing, Marc P.S. Not sure where to look to find these kinds of dividend growers? My Ultimate Dividend Package is a great place to start. In it, I share the details on five of my favorite dividend stocks, including... - A 10% yielder that has boosted its dividend by an average of 12% each year since 2017
- A quarterly dividend raiser that carries 25% of the world's internet traffic
- A popular energy company that pays what I call "the safest high-yield dividend in the world."
Go here for more details on how to claim my FREE Ultimate Dividend Package. | 
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