Stable Stocks With Super Dividends

It's no wonder that investors are so hungry for dividend stocks. Not only do dividend-paying stocks provide income, but they also consistently outperform their counterparts, especially during periods of market pullbacks. When it comes to investing, it just doesn't get much better than that. Here we examine the long-term performance of dividend-paying stocks compared to those that do not offer the income benefit. The results are rather intriguing.

In the 14-year time frame beginning March 1997, the S&P Global 1200 Index produced a total return of 100%. However, the S&P Global Dividend Opportunities Index produced a nearly 300% wealth gain during the same interval. Likewise, investors whose portfolios mimicked the broad S&P 500 would have seen their portfolios increase by a whopping 150% over the last 15 years. On the other hand, those who invested in the S&P 500 Dividend Aristocrats Index would have realized a gain of approximately 290%. This discrepancy in returns becomes magnified when assessing the returns between March 2000 and 2010.While the broad S&P was practically flat, the High-Yield Dividend Aristocrats Index gained around 150%. Clearly, dividend-paying stocks tend to significantly outperform their counterparts during market downturns.

Source: Investopedia

Related Articles:
- 17 Stocks With Room To Grow Their Dividend
- We Were Dividends, Before Dividends Were Cool
- 12 Dividend Stocks Delivering The Secret To Success
- 12 Dividend Stocks For A Rainy Day
- 9 High-Yield Managed Distribution Policy Funds