Dividend-paying stocks average 5.1 percent in total returns for 2002

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Company offers consumers free access to ratings for the month of February|ret||ret||tab|

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Dividend-paying stocks outperformed their peers in 2002 with an average total return of 5.1 percent to investors, compared to a 22.1 percent loss in the S&P 500 Index and a 17.3 percent average loss among all nondividend-paying stock, according to Weiss Ratings Inc., an independent provider of ratings and analyses of financial service companies, mutual funds and stocks. |ret||ret||tab|

Weiss noted that the 5.1 percent total return generated by dividend-paying stocks comprised a 3.2 percent average dividend yield plus a 1.9 percent average stock price appreciation during 2002. |ret||ret||tab|

"Stocks that pay dividends made a comeback last year as investors searched for more stability in their portfolios," said Weiss Ratings Inc. President David Lackey. "However, just because a stock offers a good dividend doesn't necessarily mean it's a worthwhile investment. Some dividend yields are high precisely because the stock is sinking." |ret||ret||tab|

Among the 2,009 dividend-paying stocks studied by Weiss, only 725 (36 percent) receive a favorable Weiss rating of B- and higher. |ret||ret||tab|

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Weighing risk|ret||ret||tab|

Weiss warns that investors should consider the investment quality of stocks in addition to any dividends they may provide, despite the added incentive offered in President Bush's proposal to eliminate income taxes on dividends. |ret||ret||tab|

For example, none of the S&P 500 stocks paying the highest dividend yields receives a favorable Weiss rating. |ret||ret||tab|

"The allure of high-dividend-paying stocks should not cloud investors' judgment in selecting safe, quality investments," Lackey said. |ret||ret||tab|

"Even a strong dividend is unlikely to compensate for the potential loss of principal that could result from a risky investment," he added.|ret||ret||tab|

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Composite evaluation|ret||ret||tab|

The Weiss Investment Rating is a composite evaluation of both risk and performance. By applying its conservative approach to ratings and factoring in risk, Weiss effectively captures the risk/reward trade-off to investment. Weiss issues investment ratings on more than 6,900 stocks and now includes an analysis of the top 200 highest-yielding dividend-paying stocks in its quarterly publication, "Weiss Ratings' Guide to Common Stocks.|ret||ret||tab|

Weiss also issues investment ratings on more than 11,000 mutual funds, covering both equity and fixed income funds, and provides financial safety ratings on more than 15,000 financial institutions, including banks, insurance companies and brokerage firms. |ret||ret||tab|

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Free ratings access|ret||ret||tab|

Throughout the month of February, Weiss Ratings Inc. is offering consumers free access to its safety ratings and investment ratings at www.WeissRatings.com.|ret||ret||tab|

"Consumers are deluged with conflicting and sometimes misleading advice from Wall Street. Access to independent, unbiased ratings will greatly benefit the individual investor," Lackey said. "In the current climate of economic uncertainty, this is an ideal time for consumers to evaluate the risk in their investment portfolio and the safety of the financial institutions handling their money." |ret||ret||tab|

Weiss Ratings receives no compensation from the companies it rates. Revenues are derived strictly from sales of its products to consumers, businesses and libraries. The company is offering free ratings access in February to help educate consumers as they make financial decisions. |ret||ret||tab|

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