Top 5 Things You Need to Know About Dividend Paying Stocks

Top-5-Dividend-Stocks.gif

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!

Did you enjoy reading this article? If so, I encourage you to sign up for my newsletter and have these articles delivered via e-mail once a month…and it’s free!

3 comments

Julie @ Freedom 48 May 1, 2012 12:41pm

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

Read more
Read less
Kanwal Sarai May 2, 2012 02:07pm

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

Read more
Read less
Are You Ruining Your Portfolio With These 3 Bad Habits? | Simply Investing Oct 27, 2013 04:15am
[…] 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 […]
Read more
Read less