Some investment rules are so powerful they can't be rebutted with a straight face. That companies with higher dividends tend to outperform those with lower dividends is one of them. One thousand dollars invested in the S&P 500 in 1957 was worth $176,000 in 2006. The same $1,000 invested in the top 10 S&P companies with the highest dividend yields was worth $1.3 million. Countless academic studies show that dividends are typically the best way companies can reward shareholders. None that I know of argue the opposite.
But you'd never know this by looking at the behavior of corporations. For half a century, they've been distancing themselves from dividends with a passion. The dividend payout ratio -- the percentage of earnings companies pay out as dividends -- for the S&P 500 is now at the lowest level in recorded history, less than half its historic average. Since 1990, S&P 500 earnings have grown more than fivefold, yet dividends have merely doubled.
Source: Motley Fool
Related Articles:
- How To Build A Sustainable High Yield Portfolio
- 10 Stocks That Have Paid Dividends Since The 1800s
- 7 Exceptional Dividend Growth Stocks With Quality Financials
- Are You Patient Enough To Be Wealthy? These 12 Dividend Stocks Will Help You Wait
- 10 Dividend Stocks For Healthy and Wealthy Retirement
Companies Shun Dividends at Their Own Peril
Posted by D4L | Thursday, January 12, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.