1. Dividend payers beat non-dividend payers.
According to Ned Davis Research, firms in the S&P 500 that raised dividends gained an average of +8.8% per year between 1972 and 2008. Those that cut dividends or never paid them produced zero return over this entire time span.
2. Higher yields beat lower yields.
This is such a “no-brainer” that it doesn’t require explanation. Clearly, a bigger dividend puts more cash in your pocket.
3. Reinvesting your checks beats cashing them.
This buys you more shares, which leads to larger dividend checks, which buy you even more shares, and so on (this is how my dividend checks have grown).
4. Small caps beat large caps.
A 70-year study of different equity classes showed that $1,000 invested in small-cap stocks grew to $3,425,250. In large-cap stocks it grew to only $973,850.
5. International beats domestic.
The average U.S. stock pays just 2.0%. That’s peanuts compared to yields overseas. Stocks in New Zealand yield 5.4%… stocks in Portugal yield 4.1%… in Spain 5.3%… and in the Czech Republic 4.8%.
6. Emerging markets beat developed.
It’s much easier for a small economy to post fast growth than a large one. And investors who know this benefit. Since 1994, Vanguard’s Emerging Markets Stock Index Fund is up +268%. Stocks throughout the developed world, as measured by Morgan Stanley’s EAFE index, are up just +55%.
7. Tax-free beats taxable.
Tax-free securities often put more cash in your pocket at the end of the day — especially if you’re in a high tax bracket. A muni fund yielding 6.0% pays you a tax-equivalent yield of 9.2% if you’re in the 35% tax bracket.
8. Monthly payouts beat annual payout.
Getting paid monthly is not only more convenient — you actually earn more. Thanks to compounding, a stock paying out 1% monthly yields far more than 12% — it can actually pay you 12.68% if you reinvest.
fonte: email: The 8 Rules I Use to Earn $112.77 in Dividends Per Day