“Do Not Dump Those Dividends” is the message from Sam Stovall, chief equity strategist, S&P Capital IQ Equity Research. He’ll be speaking in this free webinar available to BetterInvesting members and guests on March 19 from 8:30 p.m. to 9:30 p.m.
Just register online here.
During the second quarter of 2013, after the U.S. equity markets flew into a “taper tantrum,” dividend-rich stock prices took it on the chin. As a result, many income-oriented investors began to wonder if they should bail out of their high-yielding holdings.
“When 40 percent of the S&P 500’s total return since 1926 has come from reinvested dividends, I think investors should think twice before selling,” Sam says. “If you are a believer in reversion to the mean, consider that S&P 500 constituents currently pay out only 36 percent of earnings, versus their long-term average of 54 percent.”
“When 40 percent of the S&P 500’s total return since 1926 has come from reinvested dividends…” — say it again, Sam, that’s something worth remembering.
Want to learn more about how searching for high yields, low volatility and above-average, long-term earnings per share growth are not mutually exclusive goals?
Sign up now for this special BetterInvesting webinar in which Sam Stovall will identify some higher yielding stocks that not only offer lower betas, but also sport track records of raising both earnings and dividends in each of the past 10 years.
Sam Stovall, the author of The Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market, is a regular on financial news channels such as CNN Money and FoxBusiness. To find out more about his background, check out a brief backgrounder on him here.
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