Dividend paying stocks are typically associated with mature, slow growth companies that have no better use for cash than to just pay it out to shareholders. These stocks are for old people who need income and can't handle volatility. However, since the beginning of 2000, dividend payers have been absolutely killing it.
During the period, the S&P 500 is down 21%. If you had reinvested the S&P 500 dividends, your total return would've been -2%. If you had invested in the S&P 500 Dividend Aristocrats—large-cap stocks that have increased dividends annually for the last 25 years—then you would be up 119%. These stocks include names like Kimberly-Clark, Walmart, and McDonald's.
Source: Business Insider
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