Have you ever wondered…
“How much of the total return, in stocks, comes from price appreciation?”
“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.
They’re Bond Beaters: Since 1979, dividend income from S&P 500 stocks has increased five-fold, while interest income on bonds has declined.
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.
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”