Think dividends are of little importance to investment returns? Consider this stat from Standard & Poors:
From January 1926 through December 2004 the annualized total return for the S&P 500 was 10.46% per year. The dividend component consists of 41.28% of the return.
41.28% is a much larger number than we would have guessed. If you’re now ready to go yield hunting, consider starting with these names from Jack Hough’s “Not Just Income” screen in Thursday's Wall Street Journal which “makes modest dividend demands while looking for stocks that seem likely to increase in value.” Hough ran the same screen in January and it has since returned 7.4% vs. 1.2% for the S&P 500.
(Trailing P/E, Yield -- from Yahoo Finance)
* Autoliv (NYSE:ALV) 16.88, 2.3%
* Bank of New York (NYSE:BK) 16.66, 2.50%
* Black & Decker (BDK) 13.90, 1.70%
* Briggs & Stratton (NYSE:BGG) 12.92, 2.60%
* Eaton (NYSE:ETN) 14.19, 1.80%
* Exxon Mobil (NYSE:XOM) 10.92, 2.00%
* First American (NYSE:FAF) 8.59, 1.8%
* Intel (NASDAQ:INTC) 15.64, 2.10%
* Selective Insurance (NASDAQ:SIGI) 11.84, 1.70%