With bond yields at historic lows investors have been flocking to dividend-paying stocks as a source of investment income. Dividend investing has been becoming increasingly popular among investors, and the resulting demand is driving up stock prices. In 2011, dividend stocks crushed the 2.1% gain for the S&P 500 Index, gaining an average of 8.3%.
Howard Silverblatt, S&P's senior index analyst, recently stated that the Standard & Poor's 500 Index companies have never paid more dividends than now. In 2012, S&P 500 companies are on pace to pay out a record amount in dividends -- $277 million or about $29.02 per index share. "The pressure to introduce and increase dividends could get intense," said Joshua Peters, an equity analyst at Morningstar Inc. "Chief executives and corporate boards are going to start noticing that investors are rewarding dividend-paying stocks."
Source: Market Watch
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Well some share like IBM who spent more on dividends and share repuchase personaly I think are doomed, so dont get to exived on dividend payments, because it cant drain the comapny and forece it into debts. Balance of equity growth and dividends should be found. Personaly I dont like share repurchase as it is a way to manipulate the market and keep share price at high level.