Dividend Yield Return vs Price Appreciateion

While stock dividends in the aggregate do fluctuate, they do not ordinarily fluctuate as much as stock prices. The crash of 2008 created an exception when bank stocks, which were leading dividend payers, stopped paying dividends in many high profile cases.

The growth and relative stability of dividends is an important fact for those investors who rely on their portfolios to support lifestyle. Drawing fixed or growing sums of money from a portfolio by selling stocks with fluctuating prices is “reverse dollar cost averaging”.

Source: Safe Haven

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