Dividends account for a significant portion of the total returns of the S&P 500 over long periods. The table below shows the contribution of dividends to the total returns of the S&P 500 over the decades since 1940: Click to enlarge Source: A Brave New World, Dec 2014, The Absolute Return Letter, Absolute Return Partners It is …
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I came across an interesting article titled Stampede to the International Market by Edward Friedman, Senior Research Analyst at McLean&Partners of Canada. In the article Mr.Friedman discussed the importance of diversification for Canadian investors. The following post is based on that article. The S&P/TSX Composite Index has lagged the performance of the S&P 500 this year. While …
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When investing in stocks it is always a good strategy to invest for the long-term. Short-term investing is not investing but more must be more aptly called trading.Trading commissions and taxes eat away at any gains that can be made in short-term. Most of the retail investors are better off holding stocks for the long-term. Trying to …
The U.S. equity market has had an excellent performance two years in a row. In 2013, the S&P 500 soared by 29.6% on price basis and this year it is up by 12.6% as year-to-date (YTD) as of Dec 22nd. Many developed and emerging markets on the other hand have had a bad year with returns …
Dividend stocks can generate higher returns from an equity investment compared to non-dividend stocks. The total return from dividend stocks can get a significant boost from dividend reinvestment especially over the long-term. The following chart shows the difference in returns between total returns and only price returns using the MSCI All Country World Index: Click to enlarge …
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