Articles

Stocks with Rising Dividends

Stocks with Rising Dividends
(Long-Term Returns)

Here's a simple fact that many people don't know: Over the past four decades, stocks with rising dividends outperformed every other type of stock. This 44-year study from Ned Davis Research and Oppenheimer Funds tells a clear story:

Rising Dividends - stocks (1972 - 2016)

In the diagram above one can clearly see that stocks with rising dividends greatly outpaced the stocks that cut their dividends or simply did not offer a dividend in the first place.

What does that mean in real numbers? Here is the answer:

♦ USD 100,000 invested 44 years ago in stocks with no dividends would be worth USD 9,157,000 today.

♦ USD 100,000 invested in stocks with fixed dividends would be worth USD 15,256,000. Not too bad !

♦ But that same USD 100,000 invested in Rising Dividend Stocks would be worth an astonishing USD 21,950,000 !

Therefore please note, investing in Rising Dividend Stocks over fixed dividend stocks would have boosted your profits even by an extra USD 6.7 Million in the shown 44-year study.

MythBuster

Ever heard of the following Myth? "Dividend-paying stocks are the slow, boring way to invest." Well, here was a time when being a “dividend investor” was practically synonymous with being a shareholder in public utilities...

But nowadays; Please remember, that Stocks like Microsoft, Texas Instruments, even Nike all pay dividends. Even tech superstar Apple has hopped on the dividend bandwagon, paying more than USD 10 billion in its first year alone!

The quick n dirty Conclusion

For income investors, dividend-paying stocks are (often) favored because they can provide some kind of stability and income a "resilient" Stock-Investor may want. But unlike the fixed interest payments of bonds, dividend-paying stocks can also give you growth from both a Rising Dividend Yield and from a Rising Stock Price (in the Long Term).

Additionally, dividend investing may help minimising your risk, providing a cash cushion during volatile markets. Always remember: Stock prices may rise and fall, but dividends can reward you year after year after year and so on...

Disclaimer: Ralph Gollner hereby discloses that he directly owns securities of some of the stocks mentioned above: Microsoft (MSFT), Apple (AAPL), Texas Instruments (TXN) as per 27th Janury 2018.

Disclaimer/Hinweis nach §34 WPHG zur Begründung möglicher Interessenkonflikte: Aktien von Microsoft (MSFT) und von Apple (AAPL), Texas Instruments (TXN) Unternehmen die in diesem Blogeintrag/Artikel behandelt/genannt wurden, befinden sich aktuell im "Echt-Depot" von Mag. Ralph Gollner - per 27. Januar 2018.


link / Ned Davis Research Group:

www.ndr.com