Tried-And-True Advice About Dividend Stocks

The dividend stock, the old faithful of the equity investment world, might seem a little bland at first. After all, dividend-generating companies tend to be older and less volatile than exciting high-growth companies. Nonetheless, consider this bit of wisdom from legendary investor John Bogle: ”If you invested $10,000 in the S&P 500 Index when it was first created in 1926, you would have had $33.1 million dollars by September 2007 — but only if you’d reinvested all your dividends. If you didn’t reinvest them, your portfolio would have been worth only $1.2 million.”

Even if you only started investing in the S&P 500 in 1990, the benefits of dividends are pretty clear. The graph below shows the difference between the S&P 500 with reinvested dividends (the orange line), and the S&P 500 without those reinvested dividends between 1990 and today. The margin is pretty wide!

Source: InvestorPlace

Related Articles:
- 5 Dividend Stocks That Gave Me A 20%+ Annualized Return
- 6 Rainy Day Dividend Stocks
- When A Stock Fails To Raise Its Dividend: Is It Time To Sell Intel?
- 4 Dividend Stocks For A Confident And Secure Future
- High-Yield, High-Return Investments To Increase Income While Waiting On Dividend Growth