Some investors in equities haven't fared badly because they have marched to a different mantra. This strategy, too, can be summed up in a simple catch phrase, yet it's also usually much less difficult to execute. So what's the secret? Invest in stocks that pay you to hold them. In other words, buy dividend-producing equities. It's a proven investment strategy, especially when it's refined one step further: Invest in stocks that have a history of increasing their dividend.

Stephen Watson, an investment adviser with MGI Securities in Winnipeg, is a firm believer in the power of the dividend. And his affinity for this investment style was the topic of a recent presentation he made at the Manitoba Association for Business Economics. In the talk, he argued dividend investing is a foundational philosophy to create portfolios for both growth and income while managing volatility and fighting inflation.

Source: Winnipeg Free Press

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