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Historically, dividends have accounted for a considerable portion of stock market returns. As recorded historically, dividends represented a significant portion of overall returns, with 84% of the S&P 500's return attributed to reinvested dividends and compounding from 1960 to present. An interesting aspect of analyzing dividend performance involves distinguishing between Dividend Aristocrats—stocks that have increased dividends for at least 25 consecutive years—and Dividend Kings, which boast a track record of 50 consecutive years of dividends.
The Selection Process for Dividend Stocks
The process of selecting strong dividend-paying stocks involves several factors. Maximizing investments starts with solid criteria: