Dividend stocks are making a comeback. Because companies that pay and grow their dividends tend to be more well-heeled value stocks – as opposed to growth stocks – the group tends to be more defensive than the general market. Dividend stocks may lag in a stronger market, but are more likely to outperform in a down market. While the Standard & Poor's 500 index is off more than 2.8 percent so far this year, the S&P High Yield Dividend Aristocrats index and the Dow Jones U.S. Select Dividend index are both up roughly 3 percent. The broader WisdomTree Dividend index is down just 0.04 percent.
From 1972 through 2014, dividend-paying stocks in the S&P 500 provided an average annual total return of 9.3 percent, compared with non-dividend paying stocks that generated 2.6 percent returns, according to Ned Davis Research. Companies that grew their dividends performed even better. "They generate better returns with less volatility," says David Bahnsen, chief investment officer of the Bahnsen Group, part of Chicago-based private wealth management company HighTower Advisors. Dividend aristocrats are strong companies. With the markets struggling this year amid economic growth concerns, dividend stocks could outperform the market as investors look for the safety of big dividend-paying companies.
Source: U.S. News and World Report
Related Articles:
- 5 Higher Yielding, Lower Risk Stocks To Perk Up Your Dividend Income
- 6 Dividend Growth Stocks With Very Little Debt
- 4 Secrets To Finding The Best Dividend Stocks
- What Determines A Dividend Stock's Yield
- 7 Dividend Stocks Yielding Over 3%, With Tiny Payout Ratios
Why You Should Own Dividend Stocks
Posted by D4L | Sunday, March 27, 2016 | ArticleLinks | 1 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
The fact is that there are many interesting high-yielding companies that have good long-term prospects. Besides, as the markets get more vol...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
Are you looking for a great dividend stock to add to your portfolio? There are many options out there, but the reality is that many just don...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Good income investments often come with strong dividend yields, delivering income that's higher than an investor could find at a bank or...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Both of the listed stocks are often discussed on the Reddit page, and for very different reasons. The former pays a frequent special dividen...
-
When it comes to dividend stocks, investors can fall into the trap of focusing on dividend yield over all else. That can be a dangerous stra...

It is awesome watching dividends getting added to my account. I hope the 9.3% growth continues in the future.