Between 1972 and 2010, S&P 500 has increased from 102.09 to 1257 points. If you add in the reinvested dividends received each year, the index should have been sitting at 2,752. Given this simple calculation, it is no wonder that investors, who focus on stocks paying a dividend, have an apparent edge in the markets. The edge consists of the fact that their stocks will increase in price over time, while also receiving another form of return in the form of dividends. The dividend return is not dependent on the stock market and is typically less volatile than the return on capital gains. The dividend return can never be negative.