Investors generally fall into two camps: Those with an interest in growth stocks and those who favor income or dividend stocks. Growth stocks tend to work best for younger investors working toward significant capital appreciation, that can invest for the long-term and ride out the short-term volatility that often occurs. Conversely, income/dividend stocks tend to work best for older investors looking to get steady income from their investments and looking to avoid instability on the share-price front. They will trade more modest stock price returns if their holding has those characteristics.
But what if you could find an investment that can provide the best of both camps? Well, that would be ideal. And there are some dividend-paying stocks that have the potential to produce significant long-term share price gains. Three of them — BlackRock (BLK -0.01%), JPMorgan Chase (JPM 3.03%), and Taiwan Semiconductor Manufacturing (TSM 1.53%) — are among the best of this breed. Let’s find out a bit more about these three stocks.
You may be more familiar with BlackRock than you realize. This is the company behind the iShares family of exchange-traded funds. It also manages several conventional mutual funds. It’s one of the world’s biggest investment managers, in fact, boasting more than $9 trillion worth of assets under management as of the close of the second quarter.
The stock itself has been a poor performer of late, down 28.3% from November’s high. Investors understandably fear that economic weakness and the impact it could have on the stock market could prove problematic for BlackRock. Like all other fund managers, its fiscal fate is linked to equity values. But not quite in the way many people assume.
Fund companies’ revenue typically isn’t performance-based. Investment managers are paid a percentage of the assets they’re managing. While a marketwide pullback shrinks asset bases and consequently shrinks these companies’ revenues, even after the market’s big declines…
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