The contribution of dividends to total returns is significant. In decades when stocks yielded negative returns the return from dividends offer a cushion to the overall portfolio returns. The chart below shows the contribution of dividends to the total return of the S&P 500 by decade: Click to enlarge Source: Dividends Matter, Rational Advisors From the above …

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Equity investors are bombarded with a multitude of statistics on a daily basis mostly showing past data. However the past does not predict the future and for the most part past performance does not mean predict the future performance of a stock. With the US Presidential election coming up, one of the many stats that …

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Dividend paying/growing stocks generally outperform non-dividend paying stocks. When dividends are reinvested the compounding effect gives a boost to the overall total return of an equity investment. This effect becomes especially strong over long time periods for obvious reasons. Stocks that not only pay dividends but also grow their dividends consistently year after year tend …

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A multibagger is a stock that multiples many times over. An investor in a multibagger will reap a huge return of their original investment as opposed to say simply doubling the money. One example of a multibagger is Continental Aktiengesellschaft (CTTAY) of Germany. Here is a brief intro about the company: Today, Continental ranks among the …

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Stocks that fall to depressed levels may take years to recover.Sometimes such companies may end up going bankrupt and equity becomes worthless. Though stocks may be depressed they may continue to trade and simply frustrate investors for years. Depressed levels can be considered as big declines of 50% or more. The example below shows the …

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