Studies have shown that since 1930, around 40% of the stock market’s total returns came from dividends.
One study by Ned Davis Research is particularly telling, noting that dividend-paying stocks provided returns of more than 10% a year from 1972-2005.
Non-dividend-paying stocks, by contrast, posted gains of just 4.1%.
Dividend stocks are even more attractive when you consider the payoff from reinvested dividends.
For example, if you had invested $10,000 in S&P 500 30 years ago, the investment would have a $110,740 value today. But if you reinvested dividends, that $10,000 would have grown to $255,600, according to USA Today.
One study by Ned Davis Research is particularly telling, noting that dividend-paying stocks provided returns of more than 10% a year from 1972-2005.
Non-dividend-paying stocks, by contrast, posted gains of just 4.1%.
Dividend stocks are even more attractive when you consider the payoff from reinvested dividends.
For example, if you had invested $10,000 in S&P 500 30 years ago, the investment would have a $110,740 value today. But if you reinvested dividends, that $10,000 would have grown to $255,600, according to USA Today.
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