Problem
Despite historical performance from 1930 - 2021 showing that dividend income yielding an average of 40% towards the total return of the S&P 500 Index, the 1990s represented a decade where the value and significance of dividends were underestimated ("The Power of Dividends," 2022). Corporations during the 1990s believed that it was more feasible and beneficial to reinvest their capital into their businesses versus paying dividends to stockholders. While on the other hand, the great amount of capital gains throughout the 1990s caused investors to divert their focus away from dividends ("The Power of Dividends," 2022).
Considering the current volatile stock market, how have COVID, inflation, supply-chain issues, geopolitical events, and/or other factors increased or not increased the interest of individuals to invest in dividend-paying stocks in contrast to stocks that do not pay dividends. What are your thoughts on individuals investing more into dividend-paying stocks versus growth stocks to minimize their portfolio's exposure to risk ("The Power of Dividends," 2022)?