I've been hearing a lot of arguments being tossed around about how dividend stocks are primarily the domain of passive/uneducated investors or weak companies, so I thought I'd write down some of my own thoughts on this issue. I understand where the anti-dividend crowd is coming from: I used to be one of them. A long time ago, I believed that dividend companies were for the risk-averse and elderly. Agile investors with a healthy appetite for volatility could crush the market only by aligning their fortunes with young companies growing like weeds, with the wind at their back and their best days still ahead.
I was wrong. I've moved far away from the days when I saw dividend stocks as exclusively widow and orphan concerns, though I don't count myself as an income investor just yet. A dividend shows management concern for shareholder interests, it forces managers to be more efficient in their capital expenditures, and it hedges against the depreciation of cash assets on the balance sheet. But most importantly, dividend stocks are not just for passive investors who prefer to take a hands-off approach to investment...in fact, it's the exact opposite.
Source: Seeking Alpha
Related Articles:
- 7 Dividend Stocks For The Ultimate In Deferred Gratification
- Finding Low Risk Dividend Stocks
- Why We Are Dividend Growth Investors
- What Determines A Dividend Stock's Yield
- Managing Risk With Dividend Stocks
Dividend Stocks: Not Just For Passive Investors
Posted by D4L | Saturday, March 10, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
The most dependable dividend stocks typically have a long track record of sustaining payouts through different market cycles. Companies with...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.