Dividends: A Review Of Historical Returns – Heartland Advisors

Dividends: A Review Of Historical Returns by Heartland Advisors H/T Dataroma Summary Dividend-paying equities have historically provided higher cumulative returns with lower levels of volatility versus non-dividend paying equities over long-term holding periods. Dividend payers have outperformed non-dividend payers during moderate and severe market corrections, but have underperformed in sharp market recoveries. These findings are generally more pronounced for progressively higher levels of dividend yield. Size of dividend yield should not be the sole investment consideration. “The prime purpose of a business corporation is to pay dividends regularly and, presumably, to increase the rate as time goes on.” — Benjamin…