A company dividend is one of the cornerstones of capitalism. When a company is cash-flow positive for a reasonable length of time, it gives management an opportunity to reward shareholders for their loyalty in the form of a dividend. Some investors may wonder why investing in dividend stocks is often considered an essential part of holding a long-term diversified portfolio. After all, is receiving a few cents per share really much to get excited about? Investing in dividend stocks goes way beyond just the dividend element of the company.
"Dividend-paying stocks can be an important component in an investor's portfolio, providing income, the potential for appreciation and diversification benefits that may reduce portfolio volatility," says Dan Kern, chief investment officer and president of Advisor Partners, an asset management firm in Walnut Creek, California. It's that potential for appreciation that can sometimes be lost on investors who only concentrate on seeking dividends. Yet the reason dividends are being paid is because a company's earnings can support it, which in turn means the company's stock price likely has been rising over time.
Source: U.S. News
Related Articles:
- Dividend Growth Stocks With A Defined-Benefit Pension
- 7 Higher-Yielding Stocks With A Low Price To Book
- Don't Forget: Buy And Hold Is Not Buy And Forget
- 5 Stocks With Strong Dividend Growth Metrics
- Are Defense Stocks Good Defensive Stocks?
Why Every Investor Should Hold Dividend Stocks
Posted by D4L | Thursday, September 24, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
Popular Posts Last 30 Days
-
At times like this, it is tempting to jump on a bandwagon and buy up the growth stocks, aiming to capitalize on the broader trends. But is t...
-
In today’s near-zero interest rate environment, it’s been tough for investors looking for yield. There are many high-yielding dividend stock...
-
There are some dividend aristocrats which have not only maintained but increased their dividends for over half a century. Having survived ev...
-
Three high dividend stocks to buy now feature a business development company (BDC), a national real estate investment trust (REIT) and the o...
-
The research analysts at Wells Fargo have been searching the markets for the ‘right’ buys, and their picks bear a closer look. They’ve been ...
-
This past year has been the ultimate stress test for dividend stocks. Some companies failed miserably as they either slashed or suspended th...
-
Dividend stocks are a great choice for investors looking for a regular income stream. The best dividend stocks offer a growing payout in add...
-
The dividend-paying cleaning stocks to buy now amid the COVID-19 pandemic should benefit from heightened sanitary expectations by consumers ...
-
Rather than subject themselves to this risk, savvy investors can stabilize their portfolios by taking positions in reliable dividend growth ...
-
The best dividend stocks can generate excellent long-term returns. Even better, investors can buy high-quality dividend stocks when they are...

0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.