The start of earnings season this week is typically a major positive for dividend investors. That's because companies tend to group their dividend announcements around their earnings releases. It's a logical combination; after all, those earnings are supposed to be paying for those dividend checks. A good quarter for dividends hikes will help bolster investor confidence at a fairly crucial time.
Of course, it's worth noting that dividends and capital gains aren't mutually exclusive. 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 data compiled by Ned Davis Research. The numbers are even more compelling when looking at companies that consistently increase their payouts.
Source: The Street
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- 10 Best U.S. Dividend Stocks
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