During the 13 years between 1938 and 1950, when 10-year interest rates were below 2.5%, high-dividend stocks returned an average of 18.1% (including dividends) whereas value-weighted market returns (including dividends) totaled 12.7%. High-dividend stocks not only managed to outperform the market by 5.4 percentage points a year, they had higher returns in 11 of the 13 years. The worst annual return of high-dividend stocks was minus 6.7% vs. minus 11.2% for the broader market.
High-dividend stocks provided protection when the market was down. In fact, they beat the stock market in all down years. They also beat the stock market every time the stock market increased by more than 20%. If the stocks repeat the same pattern in the following years, investors chasing high-dividend large-cap companies will manage to beat both the bond and stock markets by a large margin.
Source: TheStreet.com
Related Articles:
Dividend Stocks Beat Broader Market
Posted by D4L | Thursday, October 21, 2010 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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 screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.