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!
Related posts:
- Huaneng Keeps Gaining Just wanted to point out that one of my favorite Asian dividend stocks has been catching fire lately. Huaneng...
- The Latest Dividend News I just got the latest dividend stats from S&P, and they’re grim. Six companies — basically all the financials that...
- Start Planning for Tax Day 2008! Well, now that you’ve probably filed your 2007 taxes, I want to make absolutely certain that you start planning...
{ 2 comments… read them below or add one }
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.
Hi Nilus, I just read your article on the taxes under the 2 current candidates. With your suggestion of no federal taxes but with a 24% sales tax on personal goods, I’m not sure I like this. As a small business owner which sells
gifts, home accents, and clothing, I feel my business would be really hurt hard if consumers had to pay 23% sales tax! That would put us out of business and alot of other small businesses like mine. Thanks, Stephanie