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Studies have shown that dividend paying companies tend to outperform the general market over time. Thus I believe that a strategy of investing in stocks that regularly distribute their earnings to shareholders will provide one with a good return over time. Companies that pay dividends show that they care about their owners and have a good corporate policy toward them.

• http://dividendgrowth.blogspot.com/2008/01/whats-passive-income-from-dividends.html (1)