Most investors like dividends because they desire an income stream. However, here's an even more important reason to like companies that pay investors: In a 40-year stretch from 1972 to 2012, companies that paid a dividend delivered a 7.2% total annual return, according to a study by Ned Davis Research. Contrast that with non-payers, which only produced a 1.6% yearly return over that time frame according to the study.
Even better, the study also found that dividend growers outperformed non-growers -- delivering a 9.5% total annual return -- while higher dividend-paying stocks outperformed lower- and non-dividend payers by about 3% annually. Given those findings, investors who already like dividends will love TransCanada (NYSE:TRP), Medical Properties Trust (NYSE:MPW), and Pattern Energy (NASDAQ:PEGI) because all three offer a fast-growing, high-yield payout. That combination makes them all the more likely to outperform over the long term.
Source: Motley Fool
Related Articles:
- 6 Higher-Yielding Consumer Stocks With A History of Rising Dividends
- Are Defense Stocks Good Defensive Stocks?
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1895
- Who is David Dodd and Why Should We Listen to Him
- International Securities For A Diversified Income Portfolio
________________________________________________________________
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...
-
Part of the joy of investing is seeing your good investments continue to grow, years after your initial purchase. Aside from the financial s...
-
A common measure of dividend sustainability is the payout ratio, the percent of earnings that are paid out to shareholders. Unfortunately, e...
-
Investors looking for the best dividend stocks for 2021 and beyond should take a closer look at the stocks with the longest histories of ann...
-
Some investors — usually referred to as income investors — specifically set out to buy securities that pay them even before stock price appr...
-
A lot changes when you shift from working to retirement, including how you invest. Most investors switch from building a nest egg to living ...
-
Dividend stocks are very appealing to investors, for good reason. Growth stocks tend to make the headlines — with the 2020 pandemic, shareho...
-
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...
-
Last month we wrote about the top four companies in our model portfolio in the article 4 Dividend Dominators for 2021 - Companies With More ...
-
Safety and tranquility are both important aspects of investing for retirement. Yes, we want stocks with meaningful upside. We also -- howeve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.