Chart: Stock returns during recessions by dividend policy

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Over the long term, dividend initiators and growers have outperformed the S&P 500 — even during periods of economic recession.

  • Over the long term, dividend initiators and growers have outperformed the S&P 500 — even during periods of economic recession – and may provide investors a cushion against losses.

  • Research is critical to finding companies that are positioned to initiate or grow dividend payments. The highest yielding stocks may not be able to sustain dividend payments, while high-quality companies with sound business models and healthy free cash flow may be better able to weather uncertain conditions.