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Section 9
Dividends – An Investor’s Best Friend
Dividends Are an Important Part of Returns
When investing in stocks or stock mutual funds, retirees should
look for investments that pay generous dividends. Such stocks or
mutual funds can provide investors with a wide array of benefits.
Dividends are an important part of the total return for stocks
over time. More than half of the S&P 500’s total returns over the
last 75 years have come by way of dividends.Also, when you buy
a stock or fund that pays a dividend, you are not relying solely on
capital appreciation to make money on your investment. If you
do get capital appreciation from your investment, the dividend
will be added to that appreciation, and provide a higher total
return than a stock that doesn’t pay a dividend.
Dividend-Paying Stocks May Be More
Stable
When a company can pay stable or rising dividends over a
few years, it usually means that the company is consistently
Chapter 3: You Must Have Growth In Your Portfolio
