Dividends4Life: Dividend stocks: Too good to pass up

Dividend stocks: Too good to pass up

Posted by D4L | Saturday, August 14, 2010 | | 0 comments »

Dividend income, one of the few certainties in any market cycle, deserves a closer look and a more strategic approach by financial advisers as Congress decides how to deal with the expiring Bush administration tax cuts. Corporate cost cutting over the past few years, combined with reduced spending, has left a lot of companies with huge piles of cash on the books. This usually bodes well for dividend investors.

A major part of the appeal of dividend-investing strategy, particularly in times of extreme market uncertainty and volatility, is that it helps investors take advantage of market declines. “In March 2009 when the stock market bottomed, a lot of people sold low, but reinvested dividends helped investors buy low,” said Donald Schreiber, chief executive of Wealth Builders Inc., which has nearly $500 million under management. Left to their own devices, investors will not buy when risk is high,” he added. “But dividend payments create automatic dollar cost averaging, and forces investors to buy low.”

Source: Investment News

Related Articles:

________________________________________________________________

0 comments

Post a Comment

Note: Only a member of this blog may post a comment.

Dividend Growth Stocks News

~

Popular Posts Last 30 Days