Before you ‘chase dividends,’ here’s what to know
With increased fears of a possible recession, investors seeking steady income may turn to stocks paying quarterly dividends, which are part of company profits sent back to investors.Historically, dividends have significantly contributed to an asset's total return, sometimes providing a boost during economic downturns.From 1973 to 2021, companies paying dividends earned a 9.6% total annual return, on average, beating 8.2% from the S&P 500 Index, and eclipsing the 4.79% yield from non-dividend payers, according to a…