In stocks investing , you probably heard about the “ growth stocks “ , “dividend stocks “ , “large cap / mid –cap “ or “ blue chips “ etc .. and depending on your “desired and expectation” of the ROI of your investment , you may choose what kind of stocks to be included in your portfolio.

For most of the investors , I am sure you would have included some “income stocks “ into you portfolio as part of the diversification and also hopefully dividends can keep the value of your investment rising even when market performance sours.

The Power of Dividends :

According to research from Morningstar , dividends have played a significant role in the returns investors have received during the past 50 years. Going back to 1960, 81% of the total return of the S&P 500 Index can be attributed to reinvested dividends