Stocks, during the last six years have been, shall we say, . . . unpredictable: surging bull market in 2007, bear market retreat in 2008-2009, then a powerful bull market over the last three years. As we celebrate the surprisingly good performance of stocks in 2012, we are now being buffeted by the annual year-ahead prognostications of the financial media and Wall Street strategists. Will they be any better at predicting 2013 than they were at predicting 2012? I don't think so. Indeed, who correctly foresaw the wild ride we have been on over the last six years, ten years, twenty years etc? Nobody I know. That is the reason I became a dividend investor approximately twenty years ago.
It was then that I first learned that dividends had produced nearly 50% of the total return for stocks since the end of World War II. I also discovered that dividend growth was only about one-third as volatile as earnings or prices, and thus were far more predictable than either. In summary, dividends offer a cash return, they generate half of the total return of stocks, and dividends are among the most predictable financial data for many companies because dividends are set by the board of directors.
Source: Rising Dividend Investing
Related Articles:
- The 2012 Dividend Aristocrats
- Best Stocks for 2012
- 4 of my 5 Largest Dividend Stock Positions Have Double-Digit Lifetime Returns
- The Best Dividend Stocks In The World Are Found Here
Dividends Stocks Still The Best Investment Strategy
Posted by D4L | Monday, January 07, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
In short, dividend-bearing stocks are one of the smartest approaches stock investors have available currently. The same is true in strong ec...
-
If your growth-investing days are over (or nearly so) and you're more interested in steady income, start your search with all-weather st...
-
Finding cheap dividend stocks is critical for another reason. By the time the Federal Reserve meets for the second time in 2023, the central...
-
Investing in passive income can allow you to make money with minimal portfolio management. There are many types of investments to make passi...
-
Many companies make very predictable fixed dividend payments each quarter. When they do, their investors have a pretty good idea of how much...
-
As 2022 wraps up, many investors are likely looking for ways to position their portfolio for more macroeconomic uncertainty next year. After...
-
With inflation appearing to have peaked and fears of a recession dimming somewhat, investors have some positive catalysts to look forward to...
-
Dividends drive significant returns for Berkshire Hathaway's portfolio. One common theme of Warren Buffett's Berkshire Hathaway is d...
-
Linked here is a detailed quantitative analysis of Southern Company (SO). Below are some highlights from the above linked analysis: Company ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.