Dividends provide income in down and flat markets, which can be reinvested and compounded over time. And here’s the beauty of investing in dividends during a correction: Pullbacks provide the chance to buy stocks and funds that pay dividends at bargain-basement prices.
Also, cash flow generated from a stock is real money in your pocket. To make money on a non-dividend stock, you must correctly identify a time to sell the stock at a higher price. Dividends, on the other hand, will earn you money without you having to sell. Finally — and this is my favorite part — Wall Street can fudge a lot of things, but it can’t lie about dividends.
Source: Uncommon Wisdom Daily
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Wall Street Can’t Lie About Dividends
Posted by D4L | Sunday, July 04, 2010 | ArticleLinks | 0 comments »________________________________________________________________
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