Top 5 Things You Need to Know About Dividend Paying Stocks

Dividends are cash payments made to shareholders.  As a shareholder you are part owner of the company and therefore are entitled to share in the profits. Dividends can also help you determine when a share is undervalued, and priced right for purchase.

There are a number of other additional benefits to owning dividend paying shares, and I discuss my top five in this article.

1.       Dividends provide an immediate return
2.       Your safety buffer against the worst case scenario
3.       Dividends increase over time
4.       Dividends have a long history of being paid
5.       Dividend yield can help you determine when to buy

Click here to read the complete story at My Own Advisor where I posted this article as a guest blogger recently.

Thanks to My Own Advisor for allowing me to guest post on his awesome site!

Comments

[Julie @ Freedom 48]

Also (in Canada anyways), dividends are taxed at a much lower rate than other gains.
Gotta love that!

[Kanwal Sarai]

You are right Julie! Canadian dividends are taxed lower in Canada compared to income, interest, and capital gains. Thanks for stopping by!