The Return of Rising Dividends

Summary


DIVIDENDS are well and truly back in fashion. The latest data from investment bank Barclays Capital, which published its 2004 Equity Gilt Study last week, shows that average dividend payments are on the rise for the first time in a decade.

Historically, the dividend has played a huge role in investors' returns. If Pounds 100 had been put into shares in 1899 and all dividends reinvested, that holding would now be worth Pounds 980,653. But without the reinvestment, capital growth alone would have made the holding worth only Pounds 9,121.

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The Return of Rising Dividends

Today's investors are less familiar with the return-b...

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