Hartford Funds analysts, in collaboration with Ned Davis Research, recently updated their study on dividend stocks, “The Power of Dividends: Past, Present, and Future.”
It examined the performance and volatility of dividend-paying stocks versus non-payers over a 50-year period (1973–2023).
They found that non-dividend-paying stocks averaged a 4.27% annual return and were 18% more volatile than the S&P 500.
Dividend-paying stocks, meanwhile, delivered a 9.17% average annual return and were 6% less volatile than the S&P 500.
Bottom line: Dividend stocks pay you regardless of short-term market fluctuations.
