An investor’s objective is to find a way to reliably compound wealth over the long term, which is not as difficult as it might seem. Dividends are credited with contributing nearly a third of total equity returns since 1926. What’s more, they account for nearly half (46%) of the total return for the S&P 500 Index between 1989 and 2014.
With this in mind, it should come as no surprise that investing in America’s finest dividend-paying companies and sticking with them has provided inflation-beating returns over the long term. To confront the concerns about entering a volatile market at what might turn out to be the wrong time, you might utilize a strategy of dollar-cost averaging into a diversified group of high-quality, dividend-paying companies. An easy way–and probably the best way–to implement this strategy would be to invest directly through company-sponsored dividend reinvestment plans (DRIPs).
Source: Forbes
Related Articles:
- Stock Dividends - The Gift of Nothing
- What's More Powerful Than Compound Interest?
- Dividends vs. Stock Buybacks
- 5 Lessons Learned About Investing In Dividend Growth Stocks
- 6 High-Yielding Mega-Cap Stocks
_____________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
You know what's good to see in one of your holdings? Management actually doing what they said they were going to do. The yield is 9.97%,...
-
It's impossible to follow the specific investing strategies of the world's best investors. After all, we don't always know why t...
-
Many investors focus their portfolios on either growth stocks (if they're a long way from retirement) or income stocks (if they're n...
-
Regulators typically set customer rates for utilities to ensure investors recover a fair return on capital and allows the businesses keep th...
-
When dividend-paying companies are undervalued, investors stand to gain a constant stream of dividend income on top of capital gains, as ove...
-
Holding a stake in great businesses that regularly pay dividends and then reinvesting those payouts is one of the most dependable paths to l...
-
Market volatility is scarily high. Interest rates on sidelined cash are scarily low. Investors looking to de-risk or take some profits off o...
-
In bull markets, dividends become more or less irrelevant. When the Dow Jones Industrial Average traded above 14,000 in 2007, very few stoc...
-
Most monthly payers are REITs of some kind – and a good chunk are mortgage REITs, which are facing rising interest rates. Some ETFs also off...
0 comments
Post a Comment
Post a Comment