Dividend stocks outperformed non-dividend payers by a 2-to-1 ratio over the last several decades. According to data from Hartford Funds and Ned Davis Research, dividend stocks managed 9.6% average annualized total returns since 1973 compared to a 4.8% return for those that don't pay dividends. The best returns tend to come from dividend growers and initiators (10.7% average annual total return).