Once again, the value of dividends enhanced total return and cushioned downside volatility during an extremely turbulent quarter.
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And more of the industrial firms that make up the other two-thirds of total dividends will cut too.
What companies and others like them demonstrate is how the combination of growing sales, earnings and dividends create compelling total returns.
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And it is true that dividends add to total return, which is the combination of dividend income realized and appreciation (once realized) from owning equities.
This double taxation equals federal taxes of 45 cents on every dollar of taxable income paid as dividends (and total taxes of more than 53 cents in high tax states like New York).
Historically, bigger dividends correlate with bigger total returns for investors.
Dividends are included in the total return calculation and are assumed paid, but not reinvested.
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Morgan, calculates that, counting both dividends and buybacks, the total pay-out ratio has been quite steady.
If the dividend tax rises to 20% next year from 15% today, then the total tax on dividends paid to shareholders would be closer to 50%, and that doesn't include state and local taxes.
Even once the dividends are factored in, the total return for the ETF is higher.
Since 1997, the ETFs for these 15 countries have produced an average annualized total return (including dividends) of 8.4%.
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In the 1940s, dividends comprised 74% of the total returns investors earned on stocks and 40% for the 1950s, according to Strategas.
Both companies sorely underperformed the broader market's 7.9% total return, which includes dividends.
By my calculations, a 12% annual total return (including reinvested dividends) for the 10 years between March 2009 and March 2019 would leave the SPY at around 200, compared with a current price of about 154.
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Although REITs aren't the same bargain they were in 2000, over the past five years, the widely-followed Morgan Stanley REIT Index (amex: RMS - news - people ), which measures total return--including dividends-- has risen 20.4% per year.
They would see their income tax rates jump by nearly 20%, the capital gains tax rate increase by nearly 60%, the total tax rate on corporate dividends increase by nearly three times, their Medicare payroll tax rate increase by 62%, and the death tax rise from the grave with a 55% rate.
Dividends on insurance policies if they exceed the total you paid for the contract.
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Traditionally, dividends provided a significant part of investors' total return, even when the dividend yield was only 4-5%.
U.S. markets have shown some of the strongest gains, rising more than 100% over the period, for a total return of 120% with dividends reinvested.
The expediency of bulk-leasing negotiations may explain why, despite the theory of a few years ago that the Internet would turn malls into dustbins, mall REITs in general have scored higher total returns (stock appreciation plus dividends) than other kinds of property trusts.
The average 18-mo return for the Emerging Total Return Index (price index including dividends) is 22.4%.
Since its conversion its total return, comprising stock appreciation and dividends, has far exceeded close competitors and the market.
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Including dividends, mortgage REITs have eked out an average annual total return of 4.8% since 1971--not much better than the 4.5% inflation average.
Your total return on an investment is the sum of dividends and capital gains.
Throwing dividends into the calculation boosts the year-to-date total return to a whopping 2.25%, which annualizes to 3.83%.
Collections of properties that kick off rental income, REITs have clocked an annual 24% total return--that's appreciation plus dividends--over the past three years, versus the broad stock index's 7.5%.
The median total return for the 100 companies, including share price and dividends, rose 22% last year but only 7% in 2011, the study notes.
Additionally, many of the REITs that cut dividends in 2007 and 2008 are beginning to increase payouts and the resulting total return forecasts are growing in favor.
That's a total return of 140.6 percent, including stock gains and dividends.
The dividend payout ratio is simply the percent of total profits that are paid out to shareholders in the form of dividends to shareholders.
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