Dividend Aristocrats: A Comprehensive View

There tends to be much debate on whether dividends are a critical factor in determining the suitability of a particular investment. One fact is clear though and that is since 1926 the dividend component of the S&P 500 has accounted for one-third of the index's total return

Dividend Aristocrats have outperformed the S&P 500 Index on both a return basis and with less risk (beta).

The ability of management to maintain stable or increasing dividends indicate the quality of the firm’s earnings and its growth prospects.














The math behind compounding shows if one looses less in a down market, it takes a lower return to get back to even. In essence, if one looses less in the down market period, the portfolio will have more invested when the market turns around and moves higher.

http://seekingalpha.com/article/183829-dividend-aristocrats-a-comprehensive-view