Dividend a tip-off to a company's prospects

Chicago Sun-Times | October 28, 2001| | Copyright

Investors need to stop and smell the dividends. When investors buy stocks, they are searching for returns that come from two sources: the appreciation of a stock's price and the dividends paid directly to shareholders. Many investors question why they should pay attention to dividends at all considering the majority of a stock's return comes from price appreciation.

And who can blame them? With the speculative mania of the last two years fresh in investors' minds, and the tech sell-off looming large, most investors dismiss dividends as small change. Nothing could be farther from the truth. ...

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