U.S. equity markets have become unusually top heavy, with a small group of mega-cap growth stocks dominating both major indexes and the strategies that track them. While this concentration has powered strong returns, history suggests that crowded leadership often disperses, making diversification more valuable over time. 

A narrow focus on today’s winners may not capture the wide range of long-term outcomes that typically emerge during major innovation cycles such as artificial intelligence. 

Dividend growers have historically delivered resilient performance across market environments, helping cushion downturns while still participating meaningfully in upside. Because dividends and their reinvestment have been a major contributor to long-term equity returns, companies with the ability to grow payouts can compound value more consistently. 

Finsum: In a highly concentrated market, a dividend growth strategy offers a more balanced way to access diverse growth opportunities.