Over the last five years, Kiplinger's reports, the average beta of a dividend-paying U.S. stock has been 0.98 percent while nonpaying stocks has been 1.5. I don't expect everyday stock researchers to check the beta factor before buying a stock, but this diminished volatility of dividend-paying stocks has been reported many times.
Worried about the effect of the Great Recession on your stocks? Dividend-paying stocks have shown more buoyancy than nonpaying stocks in hard economic times. For example, in the catastrophic year of 2007, stocks that paid dividend lost and average of 39 percent on a total return basis, while those of nonpaying stocks fell 45 percent. In 2002, the stock market's second worst year of the decade, non-payers fell 30.3 percent while dividend stocks surrendered only 10.9 percent including dividends, according to Kiplinger's.
Source: MercuryNews.com
Related Articles:
Unfounded concerns about dividend stocks
Posted by D4L | Friday, May 21, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.