Dividends are similar to purchasing real estate for income. Price tends to be cyclical, but if rent is paid and there are no major impairments to the property, any dip in the price of the property should be tolerated since the income being generated remains intact.
The chart below shows the performance of S&P 500 companies from 1973 through 2020, segmented by dividend payment policy. Three conclusions are worth noting:
Dividends pay: Investing $100 into stocks that paid consistent dividends (dark…
