Dividend Stocks Shovel Cash to Shareholders

Even if dividend actions don't spur the same kinds of big-percentage moves that can be found in an earnings surprise stock, they can provide some material gains to their shareholders in the form of cold, hard cash. And dividend announcements generally tend to be grouped around a company's earnings calls.

Instead of being mutually exclusive, dividends and capital gains actually go hand in hand. Over the last 36 years, dividend stocks outperformed the rest of the S&P 500 by 2.5% annually, and they outperformed nonpayers by nearly 8% every year, all while paying out cash to their shareholders, according to a study from NDR.

Source: The Street

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