Another Chance At Choosing Stocks With Dividend Appeal by John Dorfman, Dorfman Value Investments
The past two years have been rough for dividend-paying stocks. Investors kept expecting the Federal Reserve to raise interest rates. The mere threat of a rate increase hurt dividend-paying stocks, which compete for investors’ money with fixed-income vehicles such as bonds and bank certificates.
In the long run, however, dividends are an advantage, not a disadvantage. A study of returns from 1928 through 2013 by Kenneth French and colleagues from the University of Chicago found that dividend-paying stocks offer total returns about 2 percentage points...
