John Burr Williams on Dividends

In his classic 1938 text The Theory of Investment Value, John Burr Williams published the following poem:

"A cow for her milk, a hen for her eggs, And a stock, by heck, / For her dividends. An orchard for fruit, / Bees for their honey, And stocks, besides, / For their dividends."

As the market volatility has increased lately, it's becoming increasing apparent that investors focused on fundamental earnings and dividends are being rewarded through their purchase of additional, cheaper shares at lower prices through reinvestment. If you need help, you might want to read Defensive Investing - How to Build a Portfolio for Volatile Markets to get an idea of how you can use certain types of stocks, including dividend paying ones, to improve your returns.