Dividends - Historic Times (companies, interest, money, bank)

[Willistonite]

Seems to be historic times to own dividend stocks. You have companies like IBM, AT&T, Exxon that have been paying dividends for 100 years that are paying 4 to 6%. Not only paying but raising their dividend yearly. Also utility funds that are paying 6%. Seems foolish to be keeping to much money in the bank at 1-2% unless you need in the next three months. Any thoughts on dividend stocks positive or negative?

[mathjak107]

look at the total return which includes the dividends. . they suck!

an index fund blew them away and likely will continue to blow them away . the dividend is high because a falling share price and poor performance has the effect of making the same dividend higher . it does nothing for you!

never ever confuse a dividend with interest . it would be comparable if when the bank paid you interest they reduced your balance by the same amount they gave you. that is how a dividend works . interest is on top of your balance