Josh Scandlen Podcast

Dividends historically have accounted for nearly 40% of a portfolio value's growth.  Even with the low dividend yields today, dividends still play a HUGE role in growing the net worth for investors.  In this video I show you exactly how dividends improved the performance of the Vanguard S&P 500 fund (VFINX) by 50% from 2003 until March 2018.  I compare the PRICE ONLY performance of the VFINX to the price + dividend performance.  Price only performance increased an initial $100k investment to $297k.  Yet, dividend reinvestment increased that $100k to $406k at then end of those 15 years time.  Don't forget this is in a low dividend yield environment too. In fact, after 2008 many of the higher dividend paying companies, banks come to mind, STOPPED even paying dividends.  Yet, the numbers speak for themselves; Dividends added 50% more growth than just price.  The interesting thing is that if you look at index annuities, they don't use dividends in their returns t