The Case for Dividend Quality: A Multi-Faceted Approach

Note: This article is courtesy of

By Shundrawn A. Thomas

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.” — JOHN D. ROCKEFELLER

Rockefeller’s sentiment above remains true for many investors. For decades, dividend income has been a crucial component of a stock investor’s total return, often trumping capital appreciation in volatile markets. In this recent environment of falling yields on bonds with interest rates at or near zero, dividends are especially valued. That is when income-seeking investors start to include dividends in their search for yield to meet their financial goals. Blindly focusing on yield, however, could be dangerous to an investment portfolio’s health.