Do you know what the ultimate investment protection is? It's not gold, and it's certainly not Treasuries. It's dividend stocks. Companies that pay consistent dividends are in better fiscal shape than the U.S. government and the payouts significantly outpace those of Treasuries. The advantage over gold of course is that the yellow metal yields nothing - it's simply a store of value. And yet dividend stocks also protect against inflation, since profits for the companies behind them tend to rise alongside prices.
To understand the advantages dividends can provide an investor during a down market, just look at the implosion of the dot-com bubble in 2000. According to Morningstar research, the Standard & Poor's 500 Index lost 9%, while dividend-oriented mutual funds - including high-yielding stocks in the financial-services, mutual-fund and real-estate sectors - gained anywhere from 10% to 30%. And I shouldn't need to remind you that dividends account for the majority of the stock market's returns. A study by Yale economist Robert Shiller showed that in the 109 years from 1889 to 1998, the average real return on common stocks was 7%, of which 4.7% was represented by dividends.
Source: Money Morning
Related Articles:
- 5 Dividend Stocks Trading Below Fair Value
- 8 Dividend Stocks Covering Their Dividend
- 7 Low-Debt High-Rated Dividend Stocks
- 3 Styles Of Sucessful Dividend Investing
- 9 Small/Mid-Cap Dividend Stocks Answering The Call
Dividend Growth Stocks News
- 2 Dividend Stocks to Double Up on Right Now - The Motley Fool - 5/16/2025
- 2 Recession-Proof Dividend Stocks to Buy and Hold in May 2025 - NAI500 - 5/16/2025
- Dividend stocks: LTIMindtree, Page Ind, 7 others to go ex-date next week - Business Standard - 5/16/2025
- Tata dividend stocks list: 10 companies to pay Rs 184.60; record dates here - MSN - 5/16/2025
- European Dividend Stocks To Consider For Your Portfolio - Yahoo Finance - 5/16/2025
- Automatic Data Processing Inc. (ADP) Dividend Stock Analysis - 5/16/2025
- Air Products and Chemicals Inc. (APD) Dividend Stock Analysis - 5/9/2025
- Waste Management, Inc. (WM) Dividend Stock Analysis - 5/2/2025
- Wal-Mart Stores, Inc. (WMT) Dividend Stock Analysis - 4/25/2025
- Abbott Laboratories (ABT) Dividend Stock Analysis - 4/18/2025
Dividend Stocks That Yield Twice as Much as Treasuries
Posted by D4L | Thursday, September 22, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.