Keys To Unlock Maximum Returns From Dividend Stocks

Dividend-paying stocks are as close to a "no-brainer" investment as they come. You only need to look back at the last four decades to see just how smart having your money in these income producing machines has been. According to a 42-year study by Ned Davis Research, from 1972 through December 2013, U.S.-based dividend stocks in the S&P 500 returned 9.3% a year on average -- far exceeding the 2.3% annual return for S&P stocks that didn't pay dividends.

As dividend stocks have attracted more and more money over the past few years, there's concern that some have become overvalued. In addition to buybacks, Nathan has been researching a second, "extra payment" method that most dividend investors overlook -- one that also leads to market-beating returns. You need to not only seek out companies that pay dividends and buy back shares, you also need to seek the ones that are paying down debt.

Source: Street Authority

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