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At the end of the day, investors want their stocks to produce big returns. As long as you don’t need any income along the way, it doesn’t really matter whether those returns come from dividends or from stock-price appreciation — as soon as you sell, you’ll reap the same rewards.
During the so-called “lost decade” of the 2000s, however, many investors started looking a lot more closely at dividends as the primary driver of total return. When stock prices stayed flat or fell even over long periods of time, dividends seemed like the only way that you could expect to eke out any return at all from your investments.
But are dividends really the key to total returns? A look at the stocks in the Dow Jones Industrials(INDEX: ^DJI ) will give us some insight into exactly how much of the 30 Dow stocks’ returns came from capital gains versus dividends... Continue to read.
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