[8/31/07] Famed Wharton finance professor Jeremy Siegel -- you've likely seen him on TV or read his books -- found out something very powerful recently: From 1871-2003, a full 97% of the stock market's return came from reinvested dividends -- only 3% was from capital gains on the original principal!
The case for dividends gets stronger. Dividend stocks have a reputation for safety, but they also have a secret agenda that enriches investors. Rob Arnott, former editor of the Financial Analysts Journal, and Cliff Asness, managing principal at AQR Capital Management uncovered it: Stocks with the highest yields actually show the highest earnings growth over the next decade.
There's more. Ned Davis research found that from 1972 to 2006, S&P 500 stocks not paying a dividend returned 4.1% annually, while dividend payers returned 10.1%!
[6/14/05] says Matthew Emmert, the chief analyst of Motley Fool Income Investor.
Meanwhile, Tom Gardner mentions nothing about dividends.
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