Dividends are great, especially in a down stock market. Since 1871, the S&P 500 averaged a 9.2% return. That's a long time. =) However, dividends accounted for 4.8% out of the 9.2%. Therefore, over half of the return is from dividends. The rest is from capital appreciation (2.2%) and inflation (2.2%). When stocks are down, you can sit back, relax, and collect your dividends. The last time I checked, almost all of Warren Buffet's stocks pay a dividend. Here are most of them:
Stocks (Symbol) Dividend (%)
IR 2.10
SNY 4.60
BNI 1.60
KFT 3.50
WFC 4.40
USB 5.10
UNH .10
GSK 4.70
JNJ 2.60
NKE 1.50
LOW 1.40
HD 3.20
KO 2.80
AXP 2.00
PKX 3.50
In 2007, Buffet pocketed $1.6 billion in dividend income. That's around $133 million a month from dividends. lol Is that why he's always smiling?
Whenever you look at a company's financial information, it can be confusing, arbitrary, and the numbers can be faked. But you can't fake a dividend.
Do your stocks pay a dividend?
4 comments:
hi andy. it's rachael.4a
It's a little bit different question,
but how long do you think it will take for financial crisis to be contained?
I just wonder your opinion.
Hmm...
Honestly, I don't know. The average recession in the U.S. lasts about 2 years. However, there will be some companies that benefit from the crisis. I just have to find them.
Hi, Andy! Long time, no see.
I am Joon Suh from 4b,last semester. I passed the government scholarship exam, so I will go to the U.S.A. next Summer! I am very excited now, and I think it all thanks to all the teachers and you!
Thank you! See you before I leave Korea!
Good job Joon. =) Feel free to e-mail me for any advice about living in the U.S.
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