Everybody knows where I stand on dividend growth investing. I do not consider some of the following to be much in the way of drawbacks, or even necessarily to be true. That said, some of the following items are important disadvantages that need to be seriously considered. I will refrain from editorializing, and I won't present the ways that a dividend growth investor can ameliorate the valid risks presented. My goal here is to present the downsides of dividend investing as straightforwardly as possible.
1. Market risk
2. Dividend risk
3. You may not be able to make up for a dividend cut
4. Dividends are boring
5. Initial low yield (sometimes)
6. Dividends are taxed
7. Slower growing company
8. Behavioral changes
9. Non-compounding ((I))
10. The burden of reinvestment
11. Non-compounding ((II))
12. Stock prices drop by the amount of the dividend
Source: Seeking Alpha
Related Articles:
- 10 Dividend Stocks Ignoring The 4% Rule
- Dividend Stock Bubble: Is It Even Possible?
- 8 Dividend Stocks To Consider While Waiting on Apple to Pay Its First Dividend
- Holding Bonds Could Push Your Portfolio Into The High Risk Category
- Love People, Use Dividend Stocks
12 Things To Dislike About Dividend Growth Stocks
Posted by D4L | Thursday, February 07, 2013 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
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...
-
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...
-
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.