It's Not Time to Abandon Dividend Stocks

For a discussion about equities, their future and related issues, including the impending expiration of the dividend tax cut that was enacted in 2003, we turned to Duncan Richardson, executive vice president and chief equity investment officer at Eaton Vance.

Over the long run, dividend-investing strategies, with or without tax implications to investors, have outperformed in almost all periods and in almost all countries. Over short periods, they haven't necessarily outperformed. So it doesn't really change from that respect. We have always factored dividend analysis into our stock-picking and portfolio construction. A careful study of a company's dividend payouts and policy can tell you a lot about the quality and sustainability of a company's earnings.

Source: SmartMoney.com

Related Articles:

• Yield on Cost: Measuring for Success
• Dividend Stocks Are My Conviction
• Seeding A Forest Of Dividend Stocks
• When To Sell A Dividend Stock
• Dividend Stocks: Three Keys For Successful Investing