Nobody has to convince me that dividends can create some of the world's most tremendous investment returns. But I love seeing new proof come out.
Enter a new study that was conducted by Ned Davis Research.
The firm found that, since 1972, S&P 500 index members that consistently increased their dividends -- or initiated payouts -- handed shareholders an average yearly total return of 10.4% while non-payers produced a total return of just 8.2%.
Ned Davis Research also demonstrated the power of that 2.2-precentage point difference: By investing $100 in the stocks that raised their dividends in 1972, and investor would have ended up with $3,547 today vs. just $1,745 from the non-payers.
There you have it ... proof positive that dividends make a difference!
Posted by: Nick on Wednesday, May 14, 2008
Hi, There was an article that you wrote for MONEY & MARKETS on Tuesday (5/13/2008). The article, A Great Way to find Great Stocks, talks about screening for stocks. Can you tell me if there are any search programs that will let me screen for international stocks that are listed on foreign exchanges.
Posted by: Nilus on Thursday, May 15, 2008
Hi, Nick. I don't know of any free programs off the top of my head. However, you could always check out foreign investing portals/websites that may offer screening tools for "local" exchanges. Your broker may also offer something. I have a Bloomberg terminal, which allows me to search any exchange out there. While I generally limit my screens to shares that trade here in the U.S. for Dividend Superstars, I will consider doing a future Money and Markets column on foreign-listed dividend payers if that's something you're interested in!