Dividends stocks back in favor
As the stock market appears to be on the downturn, dividends stocks look more appealing. Moreover, the value of such stocks regardless of market conditions has improved since 2000. John Gin writes:
Since the dividend resurgence started early in the new millennium, stocks that pay dividends have steadily overcome their reputation as lackluster performers. In fact, according to Standard & Poor’s, dividend-paying companies returned 18.4 percent in 2006, compared with 13.7 percent for stocks of companies not paying dividends. That means, dividend-paying investments are not only offering the potential for steady income, capital gains have become an added bonus.