This article from Daily Adviser says that from 1900 to 2017 the real return from stocks around the world average 5% with dividend yields at 4.5%. So, dividends accounted for 90% of the total return for the average investor.
The author suggests that investors should pay as much attention to cash dividends as they do to earnings. Earnings can be fudge, but dividends paid in cash cannot be.
I looked at the data I have for my portfolio and over the past 10 years to the end of 2017, dividends accounted for 54% of my total return. Over the past 20 years dividends accounted for 50% of my total return.
I should also note that over the past 18 years I have been taking money out of my portfolio that is almost equal to what I have been earning. I have no idea how this might affect my calculations above.
On my other blog I wrote yesterday about WSP Global Inc. (TSX-WSP, OTC- WSPOF)... learn more. Next, I will write about Thomson Reuters Corp. (TSX-TRI, NYSE-TRI)... learn more on Friday, April 27, 2018 around 5 pm
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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