Dividends make up 43% of S&P 500 historical returns

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Preet Banerjee from WhereDoesAllMyMoneyGo.com recently posted a great article showing that dividends have made up 43% of S&P 500 historical returns. What does this mean for you?

More dividends (money) in your pocket, more passive income! Dividends are also a great safety net from poor management. It is difficult for investors like you and me to know when a CEO of CFO might be lying or if the statements have been altered.

However once a dividend has been paid it can not be taken back.  Here's a great personal example, I purchased TRP in 2000 and since then I've received enough dividends to equal my initial investment. My investment in TRP has been completely paid off!

Focus on dividends and you will do very well for yourself.

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2 comments

Cassie @Cheap Digital Printing Jan 9, 2012 07:16pm

Is it possible for a CEO or CFO to prevent investors from using a dividend?

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Kanwal Sarai Jan 21, 2012 11:08am

No, a company's management can not prevent investors from using a dividend once it has been paid out. Once a dividend is paid out the money is yours to keep.

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