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Revision as of 15:42, 3 May 2019
With subdued economic growth and limited inflationary pressures that could drive interest rates higher, it would seem that divided payers would continue to outperform on a relative basis. Some investors may counter that these factors have contributed to elevated multiples on dividend stocks that will lower relative forward returns, but paying for non dividend payers, which have historically been more volatile, may also be undesirable in a maturing business cycle.For those with a long term view, dividend stocks have produced higher pre tax returns with less variability of returns. If I can write this article again in the distant future with another 90 year sample period recorded, I suspect that dividend stocks will again have produced both higher absolute returns with lower variability of returns.Disclaimer: My articles may contain statements and projections that are forward looking in nature, and therefore inherently subject to numerous risks, uncertainties and assumptions.
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