Over the years, academic studies have pointed to strong performance in dividend-paying stocks, compared to non-paying stocks in almost every market segment. Adding to the growing evidence, Global X has found that the outperformance in dividend stocks and exchange traded funds increases along with dividend yield.

“Dividend paying stocks have, over time and based on numerous metrics, materially outperformed non-dividend paying stocks,” according to a Global X report.

The fund provider’s findings is in line with other studies conducted on dividend and non-dividend stocks.

“According to the excellent Credit Suisse Global Investment Returns Sourcebook 2011, from 1900 to 2010 the U.S. stock market experienced 6.17% annualized real growth,” according to Morningstar analyst Samuel Lee. “About 4.24 percentage points of the market’s return came from dividends, 1.37 percentage points from real per-share dividend growth, and a paltry 0.56 percentage points from price/dividend expansion (also known as the speculative return).”

Moreover, Global X found that the outperformance increases as dividend yield increases. Specifically, between 2003 and 2012, the 0% dividend group showed an annualized return of 10.8%, the 0%-2% group gained 11.9%, the 2%-6% group showed 12.4% returns, the 6%-10% group added 12.7%, the 10%-17% group rose 18.7% and the group with over 17% yields returned 15.9%. [Global Dividend ETFs: State Street Readies New Fund]