Many individual investors, mutual funds, and institutions trade as if dividends and capital gains are disconnected attributes, not fully appreciating that dividends result in price decreases. Behavioral trading patterns (e.g., the disposition effect) are driven by price changes instead of total returns. Investors rarely reinvest dividends, and trade as if dividends are a separate, stable income stream. Analysts fail to account for the effect of dividends on price, leading to optimistic price forecasts for dividend-paying stocks. Demand for dividends is systematically higher in periods of low interest rates and poor market performance, leading to lower returns for dividendpaying stocks.The humble dividend is reclaiming its rightful place as the arbiter of stock-market value . . . To investors desperate for income, the argument for buying equities is, well, duh. Who wouldn't want a higher income? Shares might swing around, but corporate managers go out of their way to preserve the dividend.