BlackRock: Three Reasons for an Equity Dividend Focus

The portfolios we run tend to skew toward dividend yield versus high growth; it’s a very defensible posture given our mandate, which is to enable people who are already wealthy to retire in comfort and safety. No one is counting on us to discover the next 10,000%-gaining hidden gem, nor do they need us to.

But even if our client base were different, we probably wouldn’t change much – the data supports high quality dividend stocks over just about any other approach over long time horizons.

BlackRock’s got a run of charts up that make this case very well, here are three important ones:

Dividend Stocks vs Bonds:

equity income has the potential to grow over time. Yes, bonds offer the certainty of a fixed coupon until maturity, but they do not offer the type of inflation-fighting income growth that can be achieved with equities. Notably, S&P 500 dividend increases historically have outpaced the rate of inflation by 1%-1.5%.

div grow

Dividend Stocks Work in Almost Any Situation:

Companies that can pay, sustain or grow their dividends over time tend to be healthier than those that cannot. During tough times, these companies can rely more on the strength of their balance sheets and cash reserves (accrued from operating, financing or investing activities) to maintain positive cash flow and even gain an advantage.


div periodic


Dividends are the Key to Returns:

The fact is, over time, the majority of investment return comes from dividend growth. A Société Générale study found dividend growth was the single-largest contributor to nominal returns across key developed markets over the past 40 years, providing more return than changes in stock price.

div weather


Something to think about in your portfolio’s construction…

(past performance blah blah blah, do your homework, assess your own situation etc)


Dividend Stocks Over Bonds? (BlackRock)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web
  1. commented on Sep 15

    … [Trackback]

    […] Info to that Topic: […]

  2. link hack commented on Sep 19

    … [Trackback]

    […] Information on that Topic: […]

  3. immediate edge review commented on Sep 25

    … [Trackback]

    […] Info to that Topic: […]

  4. commented on Sep 26

    … [Trackback]

    […] Read More to that Topic: […]

  5. how to order marijuana online commented on Nov 21

    … [Trackback]

    […] Read More here to that Topic: […]

  6. scotiabank login online commented on Dec 03

    … [Trackback]

    […] Read More here on that Topic: […]

  7. Functional Testing Services commented on Dec 08

    … [Trackback]

    […] Read More Info here to that Topic: […]

  8. 토토 commented on Dec 24

    … [Trackback]

    […] Find More on on that Topic: […]

  9. commented on Dec 31

    … [Trackback]

    […] Find More Information here to that Topic: […]

  10. wig commented on Jan 14

    … [Trackback]

    […] There you will find 76375 more Info on that Topic: […]