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.
Analysis of Stock Market Returns During Previous Downturns
The purpose of this analysis is to provide perspective on the recent market downturn by analyzing return characteristics of equities during the last three sizable market downturns and subsequent stock performance 6 months following the trough.
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.