Dividends4Life: Protection With Dividend Stocks

Protection With Dividend Stocks

Posted by D4L | Wednesday, June 23, 2010 | | 0 comments »

It’s a fact: During weak markets, shares that pay dividends tend to hold up far better than their non-paying counterparts.In 2002, the S&P 500 broad stock market index fell 23 percent. Shares of non-payers in the index fell 30 percent. And the dividend-payers dropped just 11 percent. In 2008, the worst year for stocks since the Great Depression, the same general trend held yet again. Dividend stocks outperformed non-payers by roughly six percentage points.

And that’s just speaking in generalities … a well-chosen list of dividend stocks can do even better. For example, the sum total of my dividend stock recommendations (open and closed positions) has outperformed the broad market by about 33 percentage points over the last three years!

Source: Daily Markets

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