It is a truth universally acknowledged that a gentleman—or, indeed, a discerning investor—must be in possession of a reliable income. To rely solely upon capital appreciation is, shall we say, excessively speculative—a rather vulgar display, akin to shouting one’s wealth from the rooftops. The truly elegant portfolio is built not upon fleeting gains, but upon the steady, predictable rhythm of dividends. It is a principle as sound as it is sadly neglected.
One observes that companies which consistently share their prosperity are, as a general rule, companies of substance. They possess the temperament for restraint, the good sense to recognize that wealth, like wit, is best enjoyed when shared. And, naturally, they tend to reward those with the foresight to participate in their success.
To suggest that dividends are merely ‘good’ is rather like stating that champagne is ‘pleasant’. They are, in fact, a necessity—a bulwark against the inevitable vicissitudes of the market. A rising tide may lift all boats, but it is the dividend that ensures one remains afloat when the tide retreats.
The Case for Dividends: A Statistical Indulgence
For those who demand empirical evidence—a rather pedestrian inclination, if you ask me—allow me to present a brief table. It demonstrates, with a regrettable degree of clarity, the superiority of dividend-paying equities.
| Dividend-Paying Status | Average Annual Total Return, 1973-2024 |
|---|---|
| Dividend growers and initiators | 10.24% |
| Dividend payers | 9.20% |
| No change in dividend policy | 6.75% |
| Dividend non-payers | 4.31% |
| Dividend shrinkers and eliminators | (0.89%) |
| Equal-weighted S&P 500 index | 7.65% |
One notes, with a certain quiet satisfaction, that the absence of dividends is invariably associated with a lamentable lack of performance. It seems a rather elementary observation, yet one frequently overlooked.
Allow me to present a few specimens—carefully selected, naturally—worthy of consideration for the discerning investor’s portfolio.
1. Microsoft: The Ubiquitous Empire
Microsoft, that behemoth of software and cloud computing, is not merely a company; it is a condition of modern life. To be without its products is to be, quite frankly, behind the times. And, as it happens, it also possesses the good grace to share its profits with its shareholders.
While its recent performance has been, shall we say, momentarily subdued—a mere fluctuation, I assure you—this provides a rather advantageous opportunity for acquisition. The current dividend yield of 0.9%, while not extravagant, is steadily increasing—a testament to the company’s underlying strength. Indeed, the dividend has grown handsomely in recent years, from $2.54 in 2022 to $3.64 currently. A most agreeable progression.
The company continues to expand its reach, with revenue up 17% year over year and net income rising 23%. As its Chief Executive Officer, Mr. Nadella, observed, Microsoft is at the forefront of the artificial intelligence revolution—a rather significant advantage, wouldn’t you agree? Furthermore, its price-to-earnings ratio, currently at 24, is below its five-year average—a most favorable circumstance.
2. Medtronic: The Steadfast Innovator
Medtronic, a titan in the realm of medical devices, is a company built upon the noblest of foundations: the alleviation of suffering. And, as a happy coincidence, it also happens to be a remarkably profitable enterprise. With a current dividend yield of 2.8%, it is a beacon of stability in a turbulent world.
The company has consistently increased its dividend for 48 consecutive years—a record of unwavering commitment. Its recent performance has been strong, with revenue up 7% year over year. It is also introducing innovative products, such as the Hugo robotic-assisted surgery system, and streamlining its operations to focus on growth. Its forward P/E ratio of 16.6 is attractively positioned relative to its five-year average.
3. Schwab U.S. Dividend Equity ETF: The Prudent Diversification
For those who prefer a more diversified approach—a sensible inclination, I concede—the Schwab U.S. Dividend Equity ETF offers a compelling solution. It is a portfolio in a single share, combining a solid dividend yield of 3.5% with impressive growth performance.
The ETF tracks the Dow Jones U.S. Dividend 100 Index, comprising 100 stocks with a proven track record of dividend payments. Its top holdings include Lockheed Martin, Chevron, and Texas Instruments—companies of impeccable pedigree. And, at an annual fee of just 0.06%, it is remarkably economical—a mere pittance, considering the potential rewards.
Consider these suggestions, and perhaps you too can achieve a portfolio that is not merely profitable, but exquisitely refined.
Read More
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- Gold Rate Forecast
- Here Are the Best TV Shows to Stream this Weekend on Paramount+, Including ‘48 Hours’
- Top 15 Celebrities in Music Videos
- Top 20 Extremely Short Anime Series
- Where to Change Hair Color in Where Winds Meet
- 20 Films Where the Opening Credits Play Over a Single Continuous Shot
- Top gainers and losers
- 50 Serial Killer Movies That Will Keep You Up All Night
- 20 Must-See European Movies That Will Leave You Breathless
2026-02-16 15:02