Dividends4Life: Dividend Stocks For The Long-Term

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Dividend Stocks For The Long-Term

Posted by D4L | Tuesday, July 05, 2011 | | 0 comments »

As companies do everything they can to eliminate costs, dividends have not been spared. Names that have been traditionally known as the stable dividend payers have been anything but stable in the last few years. However, there are still a couple of names that continue to pay attractive yields.

Companies with long-term dividend track records often represent strong quality businesses that can be counted on to increase in share price over a long holding period. A study by Ned Davis research suggests that this is indeed true. Since 1972, companies that pay dividends have returned 9.2% per year versus 6.8% return per year for the S&P 500. That 2.4% difference over the past 26 years is a life changing number. A $10,000 investment at 6.8% for 26 years produces $55,316. At 9.2%, the same original sum is worth $98,580.

Source: Investopedia

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