How Long Can These Dividends Last?

Whether you're a beginning investor or a near-retiree, we can't overstate the importance of purchasing dividend-paying stocks. Companies with quarterly or annual payouts not only provide a steady stream of income, but also have the potential for capital appreciation -- a rare and valuable combination. At The Motley Fool, we're avid fans of dividends -- and not just because we like that steady stream of cash. Studies have shown that from 1972 to 2006, non-dividend-paying stocks in the S&P 500 have earned an average annual return of 4.1%; dividend stocks, however, have averaged a whopping 10.1% per year. You'd be crazy not to take advantage of that incredible difference!... Read more