Dividends Are The Investors' Friend | Value Investing News

Dividends Are The Investors' Friend

I recently learned that John Bogle had mentioned my humble blog in his latest book "The Little Book of Common Sense Investing" from a book review by my friend Mark Seed.

Some excerpts from this article on dividends was mentioned at the end of a chapter on dividend investing titled " Dividends Are The Investor's (Best?) Friend". The chapter discusses the important contribution of dividends towards total returns for the US stock market since 1926. The chapter also discusses the importance of reinvesting those dividends over time. I like how he focused on the stability of dividend income over time, placing a chart of S&P 500 dividend payments since 1926. The only major declines in dividends occurred around the Great Depression in 1929 - 1932, also in 1938, and during the Great Financial Crisis in 2008. The rest of the time we have a smooth uptrend in dividends as whole, as US corporations tend to gradually increase those dividend payouts every year since 1926. The chapter also discusses the importance of keeping costs low, in order to keep the majority of your dividend income. The book will also resonate with dividend investors, since it preaches investors to focus on their dividend checks, and ignore focusing on the fluctuating values of their investments

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