There are many reasons why an investor may elect to pursue an income-focused investing strategy, but I think that a primary one might be this: he might desire to allow business performance (and the dividend growth that reflects this) to define his success rather than the daily vicissitudes of Mr. Market.
Of course, such a strategy lends itself to criticism from those who decide to take it to a more logical extreme, "Oh look at Poor Joe. He's happy that his dividend income rose from $3,000 to $3,200 even though his portfolio value fell from $100,000 to $40,000." Such thinking can obfuscate one of the greatest appeals of dividend growth investing with blue-chip stocks: with every dividend payment made, an investor is more likely to preserve principal in the event Mr. Market is a little bit harsher.
Source: Seeking Alpha
Related Articles:
- 6 Healthcare Dividend Stocks For A Healthy Portfolio
- 11 Low-Debt, Higher-Yielding Dividend Stocks
- 7 Small-Cap, High-Yield Dividend Stocks
- 10 High-Energy, High-Yield Dividend Stocks
- 12 Dividend Stocks For A Powerful Income Stream
Dividend Investing Is Mr. Market's Enemy
Posted by D4L | Monday, October 08, 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...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
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...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
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...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.