{"id":330,"date":"2011-03-22T07:08:24","date_gmt":"2011-03-22T07:08:24","guid":{"rendered":"http:\/\/www.thebizsense.com\/views\/?p=330"},"modified":"2011-03-24T07:52:07","modified_gmt":"2011-03-24T07:52:07","slug":"the-key-to-good-returns-is-good-dividends","status":"publish","type":"post","link":"https:\/\/www.thebizsense.com\/views\/investments\/the-key-to-good-returns-is-good-dividends","title":{"rendered":"The Key to Good Returns is Good Dividends"},"content":{"rendered":"

The Key to Good Returns is Good Dividends<\/p>\n

 <\/p>\n

\"Good<\/a>

Good Returns is Good Dividends<\/p><\/div>\n

Historically, income from dividends and growth in those payments have accounted for almost all the long-term return to investors.<\/p>\n

In the US, over the period from 1871 to 2009, dividends accounted for nearly 90 per cent of the return to investors.<\/p>\n

In various European countries, since 1970 dividend payments and dividend growth have accounted for between 80 and 100 per cent of investors\u2019 returns.<\/p>\n

\u201cIn periods when stock prices are falling, dividends provide a positive offset to the negative returns from continuing to hold on to shares,\u201d says Allen Brooks, MD of energy investment bankers PPHB.<\/p>\n

\u201cDividends, and especially dividend increases, represent positive statements by managers about the health and outlook for their companies.\u201d<\/p>\n

They are also one measure of the soundness of a company. Reported earnings can be manipulated using favourable accounting assumptions. Dividends cannot \u2013 they are cash paid out.<\/p>\n

Of course, dividends aren\u2019t everything. They may be financed out of extra borrowing (as BP is now doing) in anticipation of profits recovery, but that is something that makes me very uncomfortable.<\/p>\n

And dividends may be reduced or not paid at all, so there is more cash available to management to finance expansion. Nothing wrong with that, in a growth business \u2013 providing you\u2019re satisfied that money you would otherwise be able to invest yourself is being better invested by the managers.<\/p>\n

CopyRight \u2013 OnTarget March 2011 by Martin Spring<\/p>\n","protected":false},"excerpt":{"rendered":"

The Key to Good Returns is Good Dividends   Historically, income from dividends and growth in those payments have accounted for almost all the long-term return to investors. In the US, over the period from 1871 to 2009, dividends accounted for nearly 90 per cent of the return to investors. In various European countries, since 1970 dividend payments and dividend growth have accounted for between 80 and 100 per cent of investors\u2019 returns. \u201cIn periods when stock prices are falling, dividends provide a positive offset to the negative returns from continuing to hold on to shares,\u201d says Allen Brooks, MD <\/p>\n","protected":false},"author":1,"featured_media":332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"amazonpipp_noncename":"","amazon-product-isactive":"","amazon-product-single-asin":"","amazon-product-content-location":"","amazon-product-content-hook-override":"2","amazon-product-excerpt-hook-override":"3","amazon-product-singular-only":"","amazon-product-amazon-desc":"","amazon-product-show-gallery":"","amazon-product-show-features":"","amazon-product-newwindow":"2","amazon-product-show-list-price":"","amazon-product-show-used-price":"","amazon-product-show-saved-amt":"","amazon-product-timestamp":"","amazon-product-new-title":"","amazon-product-use-cartURL":"","amazon_featured_post_meta_key":"","_amazon_featured_alt":"","amazon-product-template":"","footnotes":""},"categories":[3],"tags":[91,12,60,88],"class_list":["post-330","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investments","tag-dividends","tag-investors","tag-long-term","tag-returns","has_thumb"],"yoast_head":"The Key to Good Returns is Good Dividends - TheBizSense Views<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thebizsense.com\/views\/investments\/the-key-to-good-returns-is-good-dividends\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Key to Good Returns is Good Dividends - TheBizSense Views\" \/>\n<meta property=\"og:description\" content=\"The Key to Good Returns is Good Dividends   Historically, income from dividends and growth in those payments have accounted for almost all the long-term return to investors. 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