Dividend Underlying Growth Pushes Payouts To All-Time High

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Rupert Hargreaves
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Dividends are the investor’s best friend. While companies such as Berkshire Hathaway, Amazon and Google eschew dividends in favor of reinvesting capital, there’s no denying that for the rest of the market, dividend distributions are essential for returns. Indeed, in 2015 Hartford Funds published a white paper on the power of dividends, which found that  Going back to 1960, 81% of the total return of the S&P 500 Index can be attributed to reinvested dividends and the power of compounding. According to the research, dividends are especially important during periods when the S&P 500 struggled. In the 1960s and 70s for example,…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk