RE: LeoThread 2025-10-17 22-37

[divilife]

Dividends matter

Comments

[divilife]

US stocks averaged about a 10% annual return over the long run
That average combined roughly a 4% dividend yield plus about 6% price growth

[divilife]

The issue is long stretches where prices stagnated, for example 1929–1954, 1966–1982 and 2000–2012
Although prices rise over long horizons, extended flat periods can be problematic for anyone relying on selling shares for income

[divilife]

Those dry spells were often followed by prolonged rallies that more than made up for the earlier stagnation
Through the market swings, dividends continued to be paid and generally grew

[divilife]

The emphasis is therefore on dividends rather than on selling holdings
Prices at the time of a sale are uncertain, but dividend payments are more predictable when income is needed

[divilife]

Dividends arrive on a regular schedule, tend to grow faster than inflation, and make a suitable retirement income source

[divilife]

A growing trend away from dividends is occurring: since the 1990s dividends have become a smaller share of total returns, and weaker investor demand reduces corporate incentives to pay them

[divilife]

With current dividend yields around 1%, there may be little income smoothing during the next prolonged bear market — which helps explain why total and price returns tracked closely from 2000–2012

[divilife]

Those are some miscellaneous observations