Dividend-Paying Stocks equal Half the Market’s Profit Potential

Have you ever wondered…

“How much of the total return, in stocks, comes from price appreciation?”

And…

“How much comes from dividends?”

Since the 1930s, dividends have accounted for more than 50% of the market’s total return. So if you’re not looking at dividend-paying stocks, you’re missing out on half of the market’s profit potential.

Today, I want to present a series of charts that show, with little explanation required, the case for dividend stocks…

They’re Inflation Fighters: Past dividends that S&P 500 companies have paid have grown at three times the rate of inflation over the last 60 years.

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They’re Bond Beaters: Since 1979, dividend income from S&P 500 stocks has increased five-fold, while interest income on bonds has declined.

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They’re Smooth Sailors: Dividend-paying stocks are one-third less volatile than non-paying stocks. Plus, the average annualized return on dividend-paying stocks is nearly seven times higher.

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If pictures are truly worth a thousand words, I have to ask: “Enough said!?”

If you haven’t done so already read the Survive & Prosper issue on “Fixed Income May Not Be A Viable Path Anymore”

 

 

What Killed the Middle Class?

Today real incomes of the middle class are 5% lower than they were in 1970 and 12.4% lower than in 2000… when they peaked! How could this be?

In our new infographic What Killed the Middle Class?, we take a look at some shocking numbers to show how bad it’s become and what has been fueling this middle-class revolt.

 

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Categories: Economy

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.