General Questions Why should I focus on high-yielding income investments?
In today’s fast-paced investing world, where everyone is looking to make a quick fortune on volatile stocks, it’s easy to overlook the many advantages offered by income stocks. However, to do so would be a huge mistake. In fact, a look back at market data over the past 75 years shows that nearly half of the market’s total returns have come in the form of dividends. Between 1926 and 2003, dividends contributed 42% of the total return delivered by the S&P 500. It’s been calculated that $1 invested in the S&P 500 in 1926 would be worth $2,260 today if reinvested dividends are included, but only $90 without the dividends! If history is any guide, then dividend-paying stocks should also perform better than their non-paying peers over the long haul. This indeed has been the case. Studies have shown that dividend payers handily outperformed non-payers from 1970 to 2000. Their stock prices were also 10% less volatile, meaning they could be counted on to deliver steady returns throughout both g
