Dividend Growers Have Outperformed with Less Risk

Investors continue to be rewarded with better risk adjusted returns by maintaining a focus on investing in dividend growth stocks. A recent report from Oppenheimer contained a Ned Davis Research chart noting the dividend growers and initiators continue to achieve higher risk adjusted returns for the period 1972 - 2008.

For investors then, continuing to focus on stocks/companies that increase the company's dividend on an annual basis can be a rewarding investment approach.

"...many of the dividend payers of final interest will likely tend to be large, more established, companies with market capitalizations of more than $5 billion, and this select set will comprise the bulk of our group. In an effort to boost returns, though, we will also seek out mid-cap stocks with good dividend prospects."


http://disciplinedinvesting.blogspot.com/2009/03/dividend-cuts-no-worse-than-in-prior.html