Most investor buy a stock and then hope for the price to go up. You can hope all you want, but at the end of the day what really matters is the dividend (the money paid to you the shareholder).
Last year Globe & Mail interviewed 12 investors, from Bay Street to Wall Street to Silicon Valley, about how to make money now. Here’s what Geraldine Weiss had to say about about dividends:
What about the way investors approach dividend stocks?
I look at dividends not necessarily as an income factor, but as the only true measure of value in the stock market. Anything that doesn’t pay a dividend or some kind of return is a speculation—so dividends will always be a big factor in the stock market.
Has there been any change in the way companies approach dividends?
Blue-chip stocks have always paid dividends, and they should—they should share their good fortune with their stockholders. And income is really the main reason why an investor would go into the stock market—to get a return on his investment dollar. We all hope for capital gains, but the only thing we can really count on is the dividend.
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