Contribution of Price Appreciation and Dividends to the S&P 500 Total Return by Decade

Investing in dividend stocks is a wise strategy for many reasons including the fact that dividends alone account for one-third of the S&P 500’s Total Return from 1960 to 2019. So though the dividend yield is small for most US stocks relative to other developed markets they are still important from a long-term wealth building …

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Baillie Gifford Cuts its Tesla Stake by Half

Baillie Gifford, the Scottish investment manager has sold half of its take in electric car market Tesla(TSLA), according to an article at CityWire, UK. BG was the largest institutional investor in Tesla with holdings of about 40 million shares or about 8% of the company at one time last year. It is not surprising that …

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Value Stocks Beat Growth Stocks Over The Long Term

One of the questions on many investors’ mind these days is this: Are Value Stocks Better Than Growth Stocks? Or is value investing dead? This is not surprising since 2020 has been the year for growth. Growth-oriented stocks in the tech, renewable energy, Electric Vehicle(EV), internet retail, etc. industries vastly out-performed value equities. Some of …

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Dividend Withholding Tax Rates by Country for 2021

The Dividend Withholding Tax Rates by Country for 2021 has been published by S&P Global. This simple one-pager shows the updated withholding tax rates for each country. Certain countries such as Singapore, UK (excluding REITs), etc. are great for American investors since they do not charge withholding taxes for dividends. Others such as Colombia, Mexico, Thailand, …

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Dividend Payers and Growers Outperform over the Long-Term

Dividend-paying stocks beat non-dividend payers in terms of total return over many years. Among the stocks that pay dividends, it is even better to go with stocks that not only pay dividends but also increase them year after year consistently. Slow and steady rise in dividends compounds the return especially when a stocks is owned …

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