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Chart in a Minute

Use these simple visuals to help illustrate technical market perspectives to clients.

The potential benefits of dividend-paying stocks


Dividend-paying stocks can potentially support your portfolio amid market volatility, inflation, and rising rates.

Dow Jones U.S. Dividend 100 Index
Hypothetical growth of $10K—With and without dividend reinvestment

Chart showing divergence of returns with and without dividends reinvested

Key takeaways:

  • Dividend-paying stocks offer many potential benefits, including the ability to generate income even during market volatility, when positive returns can be tough to capture.
  • A hedge against inflation is another potential benefit. When reinvested, dividends can grow over time, which may support an investment portfolio when prices on goods and services are rising.
  • In addition, dividend-paying stocks are frequently tilted toward value. The underlying firms share some of their earnings, rather than reinvesting everything toward capital growth.

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