In our experience, history has shown that when it comes to building long-term wealth, investors who accumulate shares in well managed companies with sustainable business that pay a steady, growing stream of dividends are usually successful.
Historically these investors have seen their portfolios earn significantly higher returns, perform relatively defensively during market downturns, and be subject to meaningfully less volatility.
Why Wyverstone Capital believes dividends make a difference:
> Dividend paying companies outperform and disciplined dividend investors have been significantly rewarded
> Unlike earnings, dividends can not be manipulated or misrepresented
> Dividends drive discipline in a company’s management and provide continuous feedback on their strategy
> Dividend-paying stocks provide a built-in return, are defensive in down-markets and thrive in up-markets
> Dividend-paying companies have had higher returns with less volatility than the broad market
> Over the past 40 years reinvested dividends have been a major contributor to overall equity returns
> Reinvested dividends impact returns quickly