As the confidence level of investors gradually rises, money is being put back to work. However, many investors have questions about how to allocate their assets, particularly in equities.
Dividends: Sharing the Wealth
In recent years, both corporations and individual investors have re-evaluated the importance of dividends, adopting them as key indicators of disciplined management and lower relative volatility.
Dividend Payers Provided Better Returns than Non-Dividend Payers
Dividends not only make significant contributions to total return, but also tend, over the long run, to provide less risk than their non-dividend paying counterparts.
Concerned the Tax Rate on Dividends May Rise
History has shown that dividend paying stocks have outperformed in a wide variety of tax environments.