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
-
Long-term investors know that dividends can have a major impact on returns over time. When the stock market is struggling to make gains like...
-
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 decided to go on a hunt for quality stocks that for one reason or another have been buried, and not just this year. We found three incred...
-
Buy and hold ... forever? It's a tall order, but a select few companies are potentially up to the task. You can build a wealth-compoundi...
-
Dividend stocks can be consistent market-beaters. However, empirical research shows that the best dividend stocks tend to generate better-th...
-
High-quality dividend stocks are always worth loading up on. This is doubly true for companies that offer shareholders an attractive mix of ...
-
Some dividend-paying companies have seen their financials struggle over the years. These companies become vulnerable to dividend cuts which ...
-
Numerous high-quality dividend opportunities are up for grabs at the moment, which may be appealing to some investors given the uncertainty ...
-
Essentially, we’re looking for more Apples – tech firms with a large market cap (at least $1-billion) and the financial means necessary to p...
-
With last year’s price surge still echoing, investors need a well thought-out game plan. However, there’s a silver lining. While the allure ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.