Dividends are not always considered sexy nor do they capture investors’ imaginations or tickle their fancies the way the next Apple or Facebook might. But that does not change the fact that dividends may be the single most powerful tool you can use to build genuine wealth in the stock market. IRS auditor Anne Scheiber understood this fact and she used that knowledge to turn a $5,000 investment in 1944 into a $22 million nest egg by the time she died in 1995.
She did it by investing in rock-solid businesses that she understood—and then investing and reinvesting the dividends they threw off until she was a multimillionaire with oodles of wealth at her disposal. The Oracle of Omaha, Warren Buffett, also understands the true power of dividends. You may not think of Buffett as a dividend investor, but make no mistake: It is absolutely no accident that all but six of Berkshire Hathaway’s current holdings pay cash dividends or that those dividends are expected to add up to an eye-popping $1.3 billion in cash for Berkshire this year alone.
Source: Forbes
Related Articles:
- 10 Stocks That Have Paid Uninterrupted Dividends Since 1899
- 4 Communications Services Stocks With Increasing Dividends
- Mid-Year 2012 Top And Bottom Performing Dividend Stocks
- A Simple Approach To Earn More Than 4% In Dividends
- 5 Basic Materials Stocks With Growing 3%+ Dividends
The Power Of Dividend Stocks
Posted by D4L | Friday, September 14, 2012 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
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...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.