As many of you already know for decades now we have been preaching the benefits of investing in quality companies that pay dividends. A new study has just been released which confirms the merits of this patient investing approach.Investors in Australia who were willing to ride out more volatile periods in the market have outperformed shorter term investors, according to Precept Investment Actuaries. In its research paper, Independent Assessment of Historical Australian Share Market Returns over 20 years to 30 June 2013, the study found investors who held investments for the whole 20-year period would have achieved an average return of 9.6 per cent per annum. However, an investor who held investments for the last five-year period would have only achieved an average market return of 2.9 per cent. “it is evident that patience has been rewarded for Australian equity investors who experienced the prolonged and adverse period of the GFC.”The report also provides a breakdown of the returns, showing that over the last 20 years the average price gain for shares was 5.2 per cent per annum and average yearly dividend return was 4.1 per cent.Precept Investment Actuaries stated that this highlights the often overlooked importance of dividends and franking credits on long-term investor returns.