Dividends4Life: Stocks with Dividends You Can Depend On

Stocks with Dividends You Can Depend On

Posted by D4L | Monday, May 27, 2013 | | 0 comments »

n 1929 the S&P 500 reached an all-time high of 333.8 - three years later and the market had crashed more than 50% down to 133. It took the market until 1956 to reach that high again. However, if dividends were reinvested throughout that whole time frame, an investor would have seen a return of nearly 100% over the same time period! Without dividends, the return would have been zero. The same can be seen in the market from 2007 to 2012. The S&P 500 declined 22% over this period, but with dividends re-invested an investor would have seen their portfolio decline by only 11%.

Re-investing dividends in order to achieve market-beating returns will only work if the payouts continue, and that means that the company has to have a sustainable free cash flow, with plenty of room for sudden financial shocks or a resistance to the general economic situation, such as Chevron (NYSE: CVX), Dr Pepper Snapple (NYSE: DPS) and McDonlalds (NYSE: MCD).

Source: Motley Fool

Related Articles:
- A Diversified Approach To International Dividends
- 9 High-Yield Dividend Achievers With 25 Years of Increases
- 7 Dividend Stocks For A Confident And Secure Future
- 7 High Yielders With A Low Free Cash Flow Payout
- Wealth is a Journey, Dividend Stocks Can Take You There

Click here to have future posts delivered to you for free!



Post a Comment

Note: Only a member of this blog may post a comment.


Popular Posts Last 30 Days