Does the old adage "A bird in the hand is worth two in the bush" apply to investments? When it comes to stocks that pay dividends vs. those that don't, the answer is yes. According to Standard & Poor's, dividend-paying stocks in the S&P 500 outpaced the nonpayers in the benchmark index by 1.63% compounded annually from the end of 1979 through July 2010.
The stocks that pay dividends also tend to be less volatile. "They don't go up as much in the good times and they don't go down as much in the bad times," said Howard Silverblatt, senior index analyst at S&P. "The trick is to find a dividend that's safe," Silverblatt said. One way to do so is to look at companies whose profits are at least twice what they pay in dividends. Silverblatt said that 76 companies in the S&P 500 fit that description and yield more than the 10-year Treasury note, which yields 2.64%.
Source: Daily News
Related Articles:
Dividend stocks earn ther way
Posted by D4L | Thursday, September 02, 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...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.