Dividend Stocks RULE!
In a (welcome) change of pace from my last post here, an article of mine went up on Fool.com today looking at dividend stocks.
I've always thought highly of dividends, particularly because if you look back to the classic tomes of Foolish investing (I'm talking about Graham's Security Analysis and The Intelligent Investor) you can see just how much importance Graham put on dividends. And heck, if you look at Buffett's portfolio, you won't find any dearth of dividend payers there.
Of course, it can be a little hard to get your arms around just how well dividend payers do because many of the screening tools out there focus on stock performance in terms of changes in price. As dividend diehards know though, much of the greatness that comes from dividends comes from the fact that you build your position over time through the payouts from the company.
So lately I've been doing a lot of research and calculating dividend adjusted returns by hand (thankfully Yahoo!Finance at least publishes dividend adjusted prices). The results were pretty surprising to me and I showed some of them, along with some of my conclusions in the article linked above.
So what do you think community? Have you known about the true power of dividends all along? Do these results surprise you?