The Globe and Mail reports in its Monday edition that columnist Norman Rothery's Stable Dividend portfolio has outperformed the Toronto Stock Exchange with an average annual return of 13.5 per cent over the past 25 years. Mr. Rothery writes that this portfolio favours low-volatility dividend payers. In comparison, the S&P/TSX Composite Index trailed with average annual gains of 7.9 per cent over the same period. The Stable Dividend portfolio is composed of an equal-dollar amount of the 20 dividend-paying stocks with the lowest volatilities (over the prior 260 days) from the largest 300 Toronto stocks. It is refreshed, or rebalanced, monthly. The portfolio hit new all-time highs this year and climbed 29 per cent over the 12 months through to Sept. 30. It has been a good year to be a dividend investor. The portfolio enjoyed a relatively smooth ride over the years owing to its preference for low-volatility stocks, which often continue in their steady ways. The opposite also tends to be true: High-volatility stocks persist in their wild ways, much to the detriment of many investors. Mr. Rothery warns that relative stability does not mean that dividend stocks are risk-free, but generally fare well over the long term.