It is difficult to overstate the importance of downside protection for any long-term investment program. Investing in dividend-paying stocks, especially those that maintain and raise their dividends consistently, is an excellent way to satisfy this objective. Dividends provide income, and as dividends grow, they can force the price of a stock upward while protecting capital on the downside. In fact, dividend-paying stocks have historically declined less when the market goes down.
In this episode, we sit down with John Crawford, III, the firm’s Founder and Chairman to discuss Why Dividends Matter. In addition to being available on our website, we are pleased to announce that our podcasts are now available on Spotify, Apple Music, or wherever you get your podcasts.
Please reference our related Perspectives post for more detail:
According to Fidelity Investments and Morningstar (As of 12/31/2020), dividends have accounted for roughly 40% of the total return of US stocks since 1930.
Crawford Investment Counsel Inc. (“Crawford”) is an independent investment adviser registered under the Investment Advisers Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Crawford including our investment strategies and objectives can be found in our ADV Part 2, which is available upon request.
This material is distributed for informational purposes only. The opinions expressed are those of Crawford. The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic conditions and may not necessarily come to pass. Forward looking statements cannot be guaranteed. There is no guarantee of the future performance of any Crawford investment strategy. Material presented has been derived from sources considered to be accurate and reliable, but makes no representation thereof and accepts no liability or any loss arising from use or reliance herein. Nothing herein should be construed as a solicitation, recommendation or an offer to buy, sell or hold any securities, other investments or to adopt any investment strategy.
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