Dividends4Life: Why Dividend Stocks More Stable

Why Dividend Stocks More Stable

Posted by D4L | Tuesday, January 04, 2011 | | 0 comments »

Dividend stocks are considered more stable than those that do not pay dividends because they provide money to investors even when their share value declines. A steady income stream is delivered by the dividend itself. Multiple studies show that dividend-paying stocks tend to outperform non-dividend payers by an impressive margin.

Going back as far as 1926, studies confirm that nearly half of the return on the S&P 500 was the result of dividends paid by companies included in this index. However, it is not just the return that matters. The duration of this return and the ability for it to periodically increase are also important. Investors should find dividend investments that will be reliable over the long-term.

Source: Learn Dividends

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