Do Stocks with Dividends Outperform the Market during Recessions?

This study compared the returns of stocks with dividends with the returns of the market. It compared the S&P 500 Dividend Aristocrat Index with the S&P 500 Index. Results showed that over the recovery and recessionary phases of the last two business cycles, the S&P 500 Dividend Aristocrat Index outperformed the S&P 500 Index by 6.45 percent per annum. This implies that stocks with dividends outperformed the market in recessions.