Personal Finance: Rediscovering the magic of dividends


By Christopher Hopkins
The first American stock trades occurred under a Buttonwood tree on Wall Street in 1792. For most of that time, the principal attraction of owning shares has been the periodic cash flow paid out to the shareholders. Investors purchased stocks to obtain a stream of income payments, called dividends, and judged the attractiveness of a stock by the issuer’s ability to maintain or even increase the dividend over time.
But with the surge in growth investing culminating with the great tech boom of the 1990s, dividend payouts diminished sharply as investors became more enamored with price appreciation than cash flow. By the end of 1999, the number of public companies that paid a dividend stood at just 20 percent, down from two thirds of all firms in 1978. Thankfully, many investors are now rediscovering the importance of regular cash distributions as a significant component of their total return, and devoting more attention to the maintenance and growth of dividends.
Read the Full Article at >>>>

Author Details
This is a general posting account for VT
Due to the nature of independent content, VT cannot guarantee content validity.
We ask you to Read Our Content Policy so a clear comprehension of VT's independent non-censored media is understood and given its proper place in the world of news, opinion and media.

All content is owned by author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners or technicians. Some content may be satirical in nature. All images within are full responsibility of author and NOT VT.

About VT - Read Full Policy Notice - Comment Policy