In this video, Chuck Carnevale—co-founder of FAST Graphs and known as Mr. Valuation—shifts focus from growth stocks to income investing in this video of 6 dividend growth stocks. He explains how dividend-paying stocks can be a powerful strategy for investors seeking steady income, particularly in retirement, and why they differ from growth or total-return approaches.
Chuck emphasizes that not all stocks should be bought for the same reason. Investors must first define their goals, whether that’s income, growth, or a mix. For those prioritizing income, dividends provide a reliable cash flow that can grow over time, unlike fixed income investments like bonds or CDs which pay static coupons that lose purchasing power to inflation. While stocks carry more volatility, he argues that true risk lies in failing to keep pace with inflation—something dividend growth stocks are designed to combat.
He highlights six examples of long-term dividend growers: Realty Income, Eversource Energy, Black Hills Corporation, UGI, Bank OZK, and Becton Dickinson. Each has paid and increased dividends for at least 20 years, earning a 100% dividend growth score. Yields range from over 5% at Realty Income to around 2% at Becton Dickinson, but the key is consistency and the power of what Chuck calls “growth yield,” also known as yield on cost. This measures how much your income grows over time compared to your original investment.
Through FAST Graphs, Chuck demonstrates how dividends often provide more stability than stock prices. The price line fluctuates wildly, but dividend growth is steady year after year. For instance, a $10,000 investment in Bank of the Ozarks would have generated roughly double the dividend income of an equal S&P 500 investment over the same period, despite similar total returns. Realty Income, a monthly payer, produced over $15,000 in dividends on $10,000 invested—more than twice the S&P’s payout.
He reinforces that income investors should worry less about short-term price swings and more about the consistency and growth of dividends. Even companies with modest growth, like utilities Black Hills and UGI, provided far higher income than the S&P over time. Becton Dickinson, though yielding just over 2%, still delivered meaningful dividend growth that steadily raised income every year.
Chuck concludes by contrasting ownership vs. “loanership.” Owning dividend growth stocks provides rising income, inflation protection, and potential capital appreciation, while fixed-income investments offer “guaranteed failure” as inflation erodes purchasing power. The ultimate goal is to build a portfolio that pays you enough income to live comfortably—and gives you a “raise” each year through dividend growth.
His final message: you’ve worked hard for your money, and now it’s time for your money to work hard for you. Dividend growth stocks allow you to enjoy increasing income throughout retirement, outperforming bonds and other fixed income options over the long run. Use your FAST Graphs!
FAST Graphs Analyze Out Loud Video on 6 Dividend Growth Stocks
Disclosure: Long ES, O, UGI
Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.
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