The joy of dividend investing

THE father of value investing, Benjamin Graham, said that the true investor will do better if he forgets about the stock market and pays attention to his dividend returns and the operational results of his companies.

American oil magnate John D Rockefeller once remarked that there was only one thing that gave him pleasure - seeing his dividends come in. That is high praise for the humble dividend from a man who was worth millions.

What did these two successful investors see in dividends that many cannot? What they saw was that a dividend is tangible proof that a company we have invested in is properly rewarding us for holding its shares.