From Dividend Growth Stocks:
It seems that every financial adviser or financial publication is proclaiming that you should own dividend stocks. Each are proclaiming the virtues of dividend stocks from their own perspective.
To that, I have two questions:
1. What took you so long?
2. Do you really understand why dividend stocks are such a good long-term investment?
"The beatings will continue until morale improves" is a whimsical statement that I first saw many decades ago. The end result of improved morale is a desirable goal, but obtaining it through beatings is not a path most people would want to take.
In much the same same way many "experts" are now recommending dividend stocks based on this investing makeup. Some are recommending dividend stocks as part of their sector rotation, or as the next hot fad - stay tuned and they will tell you when to jump out. Others are recommending dividend stocks as substitutes for bonds, since yields on fixed income investments have all but dried up.
Both arrived at what I consider to be the correct conclusion, but do they really understand why dividends matter? Below are nine reasons why dividends matter in all markets...
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More on dividends:
Seven dividend stocks that Warren Buffett could love
Eight value-priced stocks paying big dividends of 4% or more
These companies are almost certain to raise dividends this month