Chart: Sustainable dividends drive long-term growth

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The latest #chartonthego demonstrates how dividend-paying stocks have outperformed.

Sustainable dividends drive long-term growth

 

  • Dividends are an important part of total return. Historically, dividends have proven to be a consistent source of returns for the S&P 500 Index throughout each decade.

 

  • Companies that are able to initiate and grow dividends have outperformed. Over the long term, companies that grow and initiate dividends have outperformed the S&P 500 Index annual average gain of 7.6%. Dividend growers and initiators (those that have either grown or initiated a dividend in the prior 12 months) have an annual average gain of 9.9%. Non-dividend-paying stocks have had an average annual return of only 2.8%.

 

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