1 Jun 2016

In a low return world, income from dividends, rather than price appreciation, can be a significant growth driver for your portfolio. Investors often vastly underestimate the importance of dividends to an investment portfolio. Dividends can be a simple way to feed a growing portfolio during uncertain times. Some dividend-paying stocks can deliver twice the yield of benchmark government bonds, while others offer the potential for capital growth and a rising income stream.

The long-term case for adding dividend-paying stocks to your portfolio is compelling. While dividend-paying stocks have tended to perform well in bull markets, they have historically provided greater protection in bear markets such that, over the long run, you have the potential to achieve higher risk-adjusted returns.

 

Some dividend-paying stocks can deliver twice the yield of benchmark government bonds

Dividend stocks yield

 

Sources: BlackRock Investment Institute, MSCI and Thomson Reuters, March 2016 

> Learn more about “Cast a Wider Net for Income”

 

 

 

 

 

 

 

 

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