Why dividends are important for investors' portfolios.

There are 2 paths of returns for the stock investors. These are:

1. Capital appreciation
2. Dividend yield.

Although every investors hope for capital appreciation, hope is not a really sound investment strategy.

We need something more concrete and more dependable, that is when dividend comes in.

Dividend being paid on a regular basis provides a more dependable return. You know you get a tangible return on your investment whenever the dividend is in your pocket, to either spend on your need or to be re-invested.

http://www.moneyshow.com/video/video.asp?wid=3508&t=3&scode=009393&th=1

Also read:
3 measures of a stock's value