When I wrote my first Top 40 eBook in 2008, I included a chapter entitled, "Why Invest in Dividend Stocks?" I discussed the pros and cons of dividend growth investing. On the "pro" side, I had 9 reasons to invest in dividend growth stocks. A couple of weeks ago, I published the 2013 edition. My number of reasons to like dividend growth stocks has grown to 19. Here they are.
1. Dividends bypass the market
2. Dividend investing can relieve obsession over market volatility
3. Dividends are real cash money
4. Dividends are always positive
5. Dividend investing provides ongoing feedback about your investment
6. Dividend growth companies are usually outstanding businesses
7. Dividend increases are usually a positive sign about the company
8. Dividend companies tend to use their cash wisely
9. Dividend programs tend to persist
10. Dividends increases continue even when stock prices decline
11. You do not have to sell the stock to get the dividend
12. Dividend payouts rise over time
13. Dividends have a low tax rate
14. Dividend stocks tend to be less volatile
15. Your principal can increase over time
16. Historically, dividend growth stocks have outperformed the market in total returns
17. You can reinvest dividends to accelerate the compounding effect
18. Rising dividends protect against inflation
19. You do not need any more invested to generate 4 percent income rather than 4 percent from sales
Source: Seeking Alpha
Related Articles:
- 2 High-Yield Investments To Increase Income While Waiting On Dividend Growth
- 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
________________________________________________________________
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...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
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...
-
How high is too high when it comes to dividend stocks? Of course, every income investor wants as much yield as possible. However, they also ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.