In the past I’ve posted a couple of times about the importance of dividends. Here’s an interesting article that illustrates their importance with a great chart. The chart shows total stock returns by decade and then breaks down the returns between capital gains and dividends. The data is clear… ignore dividends at your own risk.
(Please keep in mind the article was written last year so the 2000’s data in the chart is probably not 100% accurate)
The blogger you linked to recommended some “dividend ETFs.” Do you recommend buying such dividend ETFs or just buying individual stocks that pay dividends?
Usually I’d say the ETF would be the way to go. However, in this case I’d rather do some research and pick up a group of individual dividend payers.
The problem I have with some of the dividend ETF’s is that they tend to have a lot of financial companies in them.
At this point I have no faith in any financial company and would rather load up on consumer staple stocks like PG, PEP, KO, MCD that you know will always exist.