Why Dividends Matter
Mergent’s, which maintains the dividend achievers indexes, has come up with the following list of why dividends matter:
1 - Companies that pay regular dividends tend to be in better financial health and produce sustained earnings and revenue growth.
Mergent’s, which maintains the dividend achievers indexes, has come up with the following list of why dividends matter:
1 - Companies that pay regular dividends tend to be in better financial health and produce sustained earnings and revenue growth.
2 - Dividends help identify well-managed companies; every dividend declaration represents a promise by management and a vote of confidence by the board of directors in the company& #39;s leadership.
3 - Companies that consistently raise their dividend payouts also raise the bar on their own performance expectations
4 - Shares of dividend-paying companies possess built-in value that makes them generally more resilient in down markets, with solid appreciation potential during earnings-driven market upturns-with less price volatility