Actually, quite a bit.
Research by C. Mitchell Conover, CFA, CIPM, Gerald R. Jensen, CFA, and Marc W. Simpson, CFA identifies three major findings about dividend-paying stocks:
- High-dividend payers have the least risk yet return more than 1.5% per year above non-dividend payers.
- The benefit of targeting dividend payers is conditional on investment style. Surprisingly, it is largest for growth and small-cap stocks—the companies often thought to benefit most from reinvesting cash flows.
- Long–short managers exploiting the value premium should focus on non-dividend-paying stocks, as non-dividend-paying small-cap value stocks return about 1% more per month than non-dividend-paying small-cap growth stocks.
The entire research paper is available below.
What Difference do Dividends Make?
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