Juice Your Returns With Dividends

In recent weeks I've been discussing how to estimate expected stock returns. So far I've looked at pinning down growth and dealing with valuation multiples. Today, we'll put the cherry on top by looking at dividends and share count. There's nothing wrong with strong earnings growth and the potential of selling your shares at a higher price in the future. However, particularly after the experience of the past decade, many investors are realizing that a company that actually pays them regularly is a company worth hanging onto. Not to mention the fact that historical experience has shown dividend payers to be very kind to a portfolio.... Read more