most investors suffer from the same disease: hyperactivity. Constantly trying to gauge what direction the stock market in the coming weeks will be surprised which companies with their quarterly numbers, and what a disappointment. You try to "time" the market to anticipate the next step of the central banks, and panting constantly behind the day noise. This hyperactivity can be measured: according to data from the New York Stock Exchange American investors hold their shares are currently an average of 8 months. In 1980, the average holding period was still about four in the 60 to more than seven years. In Europe the figures are not available in a comparable level of detail, but they may look similar.
This brings nothing.
It is in long-term studies found that the vast majority of the total return on the stock markets of the dividend dates. If you invest and do not wish to speculate should be led again this knowledge to heart.
The total income from equity investments consists of three components: first
Dividend
second Growth of dividends (as a function of the gross profit growth)
third rating possible expansion
Most investors would not be aware of the importance of the dividend component.
the U.S. stock market came over the period 1871 and 2009 more than 90% of the total plant performance (total return) of the dividend yield and dividend growth.
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