It's no wonder that investors are so hungry for dividend stocks. Not only do dividend-paying stocks provide income, but they also consistently outperform their counterparts, especially during periods of market pullbacks. When it comes to investing, it just doesn't get much better than that. Here we examine the long-term performance of dividend-paying stocks compared to those that do not offer the income benefit. The results are rather intriguing.
In the 14-year time frame beginning March 1997, the S&P Global 1200 Index produced a total return of 100%. However, the S&P Global Dividend Opportunities Index produced a nearly 300% wealth gain during the same interval. Likewise, investors whose portfolios mimicked the broad S&P 500 would have seen their portfolios increase by a whopping 150% over the last 15 years. On the other hand, those who invested in the S&P 500 Dividend Aristocrats Index would have realized a gain of approximately 290%. This discrepancy in returns becomes magnified when assessing the returns between March 2000 and 2010.While the broad S&P was practically flat, the High-Yield Dividend Aristocrats Index gained around 150%. Clearly, dividend-paying stocks tend to significantly outperform their counterparts during market downturns.
Source: Investopedia
Related Articles:
- 17 Stocks With Room To Grow Their Dividend
- We Were Dividends, Before Dividends Were Cool
- 12 Dividend Stocks Delivering The Secret To Success
- 12 Dividend Stocks For A Rainy Day
- 9 High-Yield Managed Distribution Policy Funds
Stable Stocks With Super Dividends
Posted by D4L | Monday, May 09, 2011 | 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 ...
-
Investors buy dividend stocks for a few reasons. For one, they provide income via dividends that act as a bonus on top of capital appreciati...
-
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...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.