Dividends play a significant role in the long-term performance of investments. Bogle illustrates that reinvested dividends have contributed a large proportion of the stock market’s historical returns. From 1926 to 2017, dividends accounted for 42% of the S&P 500 Index's total annual return. 'Dividends made a contribution to the market’s appreciation that is almost beyond belief,' Bogle emphasizes, advocating for low-cost index funds to maximize this benefit. | John C. Bogle | The Little Book of Common Sense Investing

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The Role of Dividends in Long-Term Returns

Dividends play a significant role in the long-term performance of investments. Bogle illustrates that reinvested dividends have contributed a large proportion of the stock market’s historical returns. From 1926 to 2017, dividends accounted for 42% of the S&P 500 Index's total annual return. 'Dividends made a contribution to the market’s appreciation that is almost beyond belief,' Bogle emphasizes, advocating for low-cost index funds to maximize this benefit.

-- John C. Bogle