Mark Hulbert Recommends Dividend Aristocrats Over 10-Year Treasuries

Mark Hulbert identifies high-quality dividend-paying stocks, known as Dividend Aristocrats from the S&P 500, as strong candidates to outperform the 10-year Treasury over the next decade. Although the 10-year Treasury currently provides a higher yield of 4.9% compared to the 2.4% yield of Dividend Aristocrats, Hulbert asserts that the growth potential of these dividends makes them a superior long-term investment.

Hulbert notes that these stocks only require a 1.5% annualized price growth rate to beat the Treasury. To implement this strategy, he suggests diversified options such as the ProShares S&P 500 Dividend Aristocrats ETF (NOBL) or the Vanguard Dividend Appreciation ETF (VIG). Based on investment newsletter data, he specifically recommends stocks including Abbott Laboratories and Air Products and Chemicals.

This long-term dividend growth strategy mirrors the approach used by Berkshire Hathaway, particularly with its investment in Coca-Cola. Carlos Slim, CEO of Berkshire Hathaway, described the growth of dividends as the "secret sauce" behind the company's success.