According to recent research, it turns out that dividends have played a major part in investment performance over time. Total return from an investment includes the price appreciation of the investment and the income it generates. A study provided by International Strategy and Investment explains that 53.8 percent of the stock market’s total return since 1930 is attributed to dividends alone.
According to a study by Ned Davis Research Inc., dividend payers have outperformed nonpayers in four out of the last five decades, with the only exception being the 1990s. Dividend-paying companies also have outperformed nondividend-paying stocks with considerably less volatility in the period between December 1973 and March 2011. Dividend growers and initiators had an annualized total return of 9.6 percent and a standard deviation of 17.2, while the nondividend-paying stocks returned 1.7 percent and a standard deviation of 25.9. Standard deviation is a measure of risk, so the higher the number, the more volatile the price.
Source: Times Free Press
Related Articles:
- 13 Dividend Stocks With A Good Yield/Growth Mix
- 11 Higher-Quality, High-Yield Dividend Stocks
- 6 Dividend Stocks That Will Make You Smile
- Dividend Stocks vs. Dividend ETFs
- If Only I Had Known About These Dividend Stocks...
Dividend stocks often are the best investments
Posted by D4L | Saturday, June 04, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
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...
-
When a company pays a dividend, it's a good thing for shareholders. When a company consistently pays a dividend every quarter, it's ...
-
If you've been holding back from investing in your future just because you don't have a lot of extra cash to spare, I've got gre...
-
If you are looking for high-yield dividend stocks that can beat the market, you might want to check out these three companies. They all have...
-
If you are here to build a portfolio that thrives in all seasons, consider dividend stocks. They can generate steady returns and provide sta...
-
My top financial goal is to eventually become financially independent. The foundation of my strategy is to make investments that produce an ...
-
One way to achieve financial freedom is to create passive income, or income that does not depend on your active involvement beyond a certain...
-
The company's remarkable consistency and low-risk business model make it a "first-choice investment opportunity," according to...
-
Since 1926, dividends have contributed approximately 32% of the total return for the S&P 500, while capital appreciations have contribut...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.