Top 5 Things You Need to Know About Dividend Paying Stocks

top 5 investing tips

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!

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Julie @ Freedom 48

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

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Kanwal Sarai

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

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Are You Ruining Your Portfolio With These 3 Bad Habits? | Simply Investing

[…] go on sale? The same applies to stocks and mutual funds; you should buy when prices are low.  Dividend yield  (see number 5, in my previous blog post) can help you determine when a stock is […]
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