Face it, you want it all. You want to have your cake and eat it too.
You want the reliable income and stability that dividend-paying stocks provide, but you also want to beat the market.
Sound like a pipe dream? It's not.
According to Ned Davis Research, between 1972 and 2010, dividend-paying stocks returned 8.6% versus just 1.4% for companies that didn't pay a dividend. That's an astonishing outperformance that means the difference between turning a $100,000 portfolio into $2.4 million versus just $174,000.
And for those worried about the storm clouds in today's global economic picture, Ned Davis also showed that during periods of market decline between 1970 and 2000, dividend payers outperformed their stingy counterparts by 1.5% per month.
For one, since dividends are paid in cash, when you invest in a dividend-paying stock you can be more confident that the company you're investing in actually makes cold, hard cash. That may sound simplistic, but many companies re