Dividend investing is a robust investing style.
Dividend stocks have outperformed non-dividend paying stocks over the last 85 years. The image below shows this outperformance:
Strangely, there are few well-known quotes about dividend investing. The reason for that is beyond me… But this article will help fix the dearth of dividend investing quotes.
Keep reading to see 5 dividend investing quotes that highlight the importance of dividends in your investing strategy.
“The very attention we place on rising dividends puts us squarely in the position of ‘owners’ of a company, of true investors who understand that a satisfying and reasonable return from a stock investment isn’t a gift of the market or luck or the consequence of listening to some market maven, but it is the logical and inevitable result of investing in a company that is actually doing well enough, in the real world, to both pay dividends and to increase them on a regular basis”.
– Lowell Miller
At its core, investing is fractional ownership of businesses. Thinking in this way, it could not be more obvious that owning business that grow and make lots of money is better than owning unprofitable businesses.
When a business pays regular dividends, and regularly increases its dividends, it is signaling that it is both profitable and growing – that’s exactly the type of business all investors should be looking for.
“Successful investing is about owning businesses and reaping the huge rewards provided by the dividends and earnings growth of our nation’s – and, for that matter, the world’s – corporations.”
– John Bogle
John Bogle is the retired CEO of the Vanguard Group. He helped reduce fees for the average investor by popularizing ETFs.
Bogle’s logic is very simple. Investing is about owning businesses and reaping the rewards of their growth.
These rewards come in the form of both business growth and dividends. The larger a dividend paying business grows, the more dividends it will pay shareholders.
“The good thing about the dividend-paying stocks is, first of all you have stocks, which are real assets if we have some inflation. I think we’re going to have 2%, 3% maybe 4%. That’s a sweet spot for stocks. Corporations do well with that. It gives them pricing power. Their assets move up with prices. I’m not fearful of that inflation.
– Jeremy Siegel