Dividends have a long history of providing returns to intelligent investors. Only in the last 60 years, has investing for stock price appreciation surpassed dividends as a key source of return in the eyes of the common investor. Recent market volatility however, has caused most players in the market to rethink their investing strategy and in many cases, re-embrace the wealth-building power of dividend investing. For those who are not already aware of fundamental benefits of dividend investing, we have provided four important arguments below.
Dividend Stocks Have Outperformed Non-Dividend Stocks over the Long Term
A very common misconception with the investing public is that dividend stocks provide a lower, albeit safer, return on investment. This has helped dividend stocks earn an ill-conceived reputation for being boring. The facts however, present a completely different picture – dividend stocks actually outperform non-dividend stocks by a significant margin over the long term.