5 Reasons That Dividends Matter

Here's a look at the benefits of investing in companies that share the wealth through the experience of household-products giant Procter & Gamble.

They're a big chunk of your profits

Although Standard & Poor's 500-stock index currently yields just 1.9%, dividends have historically accounted for 43% of the U.S. stock market's long-term return of nearly 10% annualized. And dividends tend to be more predictable than stock prices. P&G's current yield is 2.8%.

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Manuel Schiffres
Executive Editor, Kiplinger's Personal Finance