T
tuknick
Guest
NEW YORK - On the heels of President George W. Bush's plan to cut the double taxation of dividends, analysts at Standard and Poor's revealed a long-term study Monday giving investors even more reasons to chase dividends.
Based on Standard and Poor's own Quality Ranking System that assess common stocks on earnings and dividend performance, S&P found that high-quality stocks, those rated A+ to A-, outperformed the S&P 500 index by 500 basis points annually over the past 17 years. If the index gained 15%, then a portfolio of only the top dividend stocks would jump 20%. In a downturn, those same stocks held up better than the overall market.
S&P has used its Quality Ranking System for more than 40 years to look at a common dividend performance as it relates to long-term growth. While it's no stretch to see the correlation of both factors--that stable dividend payers are good performers--the study's results show that higher-quality stocks are actually worth their higher multiples.
Does anyone know the S&P rating for UPS?
Cheers
Based on Standard and Poor's own Quality Ranking System that assess common stocks on earnings and dividend performance, S&P found that high-quality stocks, those rated A+ to A-, outperformed the S&P 500 index by 500 basis points annually over the past 17 years. If the index gained 15%, then a portfolio of only the top dividend stocks would jump 20%. In a downturn, those same stocks held up better than the overall market.
S&P has used its Quality Ranking System for more than 40 years to look at a common dividend performance as it relates to long-term growth. While it's no stretch to see the correlation of both factors--that stable dividend payers are good performers--the study's results show that higher-quality stocks are actually worth their higher multiples.
Does anyone know the S&P rating for UPS?
Cheers