It is widely known, and accepted, that dividends make up the majority of market returns over the long term.
Indeed, according to Standard and Poor’s dividends are responsible for 44% of the last 18 years of S&P 500 returns. Between 1929 to March 2012, the S&P 500 produced a total return of 9.4% per annum but if you deduct dividends, the return falls to only 5.2% per annum for price appreciation alone. These figures might not seem like much at first glance, but over the long term, the additional financial profit available is enormous.
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For example, a $100 investment made...
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