Dividends4Life: Wall Street is reminded of dividend stocks profitability

Historically, companies that pay higher dividends materially outperform those that don't. In the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually. And they outperformed nonpayers by nearly 8% each and every year, according to a study from NDR. That means that when a company actually increases its dividend, investors would do well to take notice.

Income investing is a philosophy that's been somewhat pushed aside since the tech boom of the late 1990s eschewed old-school dividend-payers for high-growth companies that plowed back their earnings to build their businesses. But in the two recessions that followed the dot-com bust, Wall Street has gotten an unpleasant reminder of just how profitable dividend-paying stocks can actually be.

Source: TheStreet.com

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