Plus, unique weighting methodologies may help you magnify the effects dividends can have on performance.
However, a key distinction between equities and TIPS is that TIPS have their payments of interest and principal guaranteed by the U.S. government. Equities carry no such guarantee, so values of dividend payments as well as the level of principal can fluctuate. For more information on dividend equities and how to get the most out of them, read the Dividends of a Dividend Approach white paper.
Find out more about the WisdomTree approach to dividends.
1Source: http://www.econ.yale.edu/~shiller/data.htm
Jeremy Schwartz is director of research at WisdomTree Investments (NasdaqGM: WETF). This post was republished with permission from the WisdomTree blog.