Dividends4Life: Myths About Dividend Investing (DIV)

Myths About Dividend Investing (DIV)

Posted by D4L | Sunday, June 27, 2010 | | 0 comments »

Some investors believe that rather than wait for a whole year to collect a 3%-4% dividend, you could make 3-4 % per day in the market trading volatile technology stocks. The fact of the matter is that few if any investors could accurately forecast stock market moves in order to profit from large daily swings in some of the most volatile stocks in the market today. Dividend payments on the other hand are much less volatile than stock prices, which is what makes them ideal for investors who plan to live off their investments. The stability of the payments makes them a reliable source of income in virtually any market, without having to sell a portion of one’s portfolios and exposing yourself to market fluctuations.

The truth of the matter is that dividend stocks are a superior way to not only enjoy the market upside, but to also receive a positive return during bear market declines. Dividend payments could also generate much needed capital to investors to deploy into the market, thus further compounding investor returns over time.

Source: Dividend Growth Investor

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