By Ben Steverman

After a rough couple of years for investors who rely on cash dividends from U.S. stocks, 2010 is shaping up to be a year when a dividend strategy actually pays off.

"We've definitely turned the corner," says Howard Silverblatt, a senior index analyst at Standard & Poor's.

Historically, dividends have provided a significant portion of investors' total return. For the last 20 years the prices of the S&P 500 stocks have risen an average of 6.1% per year, according to Bloomberg data. If dividends are reinvested, however, the total average annual return for the S&P 500 has been 8.4%.

A year ago many companies—particularly financial outfits—were slashing or ending dividend payouts amid a 45% plunge in...