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HindeSight Letters Investment Insights Archive - READ HERE

HindeSight Letters
Jul 28, 2023
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HindeSight Letters Investment Insights Archive - READ HERE

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Our FREE archive posts allow our subscribers to access valuable insights and analysis and a deeper understanding of market trends and investment strategies that were relevant at the time the HindeSight newsletter was published.

Additionally, reading archived newsletter content can give you a sense of the long term performance of the investments or strategies discussed which can be helpful in making informed investment decisions.

Furthermore reading this content can provide historical context and help you see how market conditions have changed over time, allowing you to better anticipate future developments.

Overall reading our archived content can be a useful tool for gaining a broader perspective on the market.

INVESTMENT INSIGHTS ARCHIVE
Originally posted in March 2014

Synopsis

• Reinvested dividends have been the dominant contributor to long-term total returns on equity securities

• On average, dividends and dividend growth have provided nearly 80% of a stock’s real return beyond 5 years

• Over 101 years such reinvestment in the UK would have produced 108x the wealth generated solely by the same portfolio relying on capital gains

• High dividend yielding stocks have outperformed low yielding stocks across numerous countries

• High dividend yielding stocks are associated with lower overall volatility of returns

• High dividend yielding stocks exhibit lower downside volatility relative to non-dividend yielding stocks

• In declining markets, high dividend yielding strategies have also outperformed other value strategies, as well as the market overall

• Dividends are a ‘bear market protector’: they cushion the fall in the value of a stock during declining markets

• During bear markets, dividend income reinvested at lower stock prices can enhance future returns. Once prices turn higher these reinvested dividends become a ‘total return accelerator’

• Empirical evidence suggests that companies with consistent dividend policies tend to have better total return performance than those without

• Dividends have helped investors in both inflationary and deflationary times

“ Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn’t ... pays it.” Einstein

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HindeSight Letters is a unique blend of financial market professionals – investment managers, analysts and a financial editorial team of notable pedigree giving you insights that never usually make it off the trading floor.

We help our paid subscribers have 100% control to build their own portfolios with knowledge that lasts a lifetime and all for the price of a good coffee a month - just £4.99 or save 2 months by subscribing to our yearly plan, only £49.99.

Our history is there for all to see, measure and research.

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