The trickle of dividend increases this earnings season is turning into an outright stream: all told, almost 60 firms announced dividend hikes in the last week. That's an important shift right now for investors. That's because dividends historically dictate a lot about a company's overall gains. With the S&P 500 now well into positive territory for 2011 thanks to yesterday's mammoth gains, it'd be easy for investors to mentally eschew dividends in favor of capital gains. But that's a big mistake.
You see, dividends and capital gains aren't mutually exclusive -- in fact, they're two sides of the same coin. 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
Related Articles:
- The Secret To Finding The Best Dividend Stocks
- 20 Dividend Stocks With A 20% Yield In 20 Years
- Seven Dividend Stocks Trading Below Fair Value
- How To Buy Dividend Stocks At The Bottom
- Four Dividend Stocks Stepping Up In The Downturn
Dividend Stocks Shoveling Cash to Shareholders
Posted by D4L | Thursday, November 03, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.