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Vietnam's "Shadow Plan" for a Fight in the South China Sea
When U.S. President Barack Obama visited Vietnam earlier this week, he became the third American head of state to do so.
But I’m going to let you in on a little secret.
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The real secret to long-term investing success is income – and with stocks, that means dividends.
Numerous studies, both academic and financial, have found dividends accounted for more than 60% of total U.S. stock market returns since 1870.
More recently, a study by Ned Davis Research covering the period from 1972 through 2008 found that dividend-paying stocks provided an annual return of 7.6% versus a mere 0.2% for non-dividend-paying shares.
What's more, companies with a record of steadily raising their dividends returned an even more impressive 8.6%.
But if you really want to boost your returns, investing in DRIPs – dividend reinvestment plans –is a safe, steady road to building true wealth.