Dividend Investing
Dividend Investing is a Value strategy that involves purchasing high dividend paying stocks for the long term
- Many followers expect to hold high-paying dividends stocks for the long term (even the rest of their lives)
Benefits of Dividend Paying Stocks
- They give you cashflow right away
- The dividends can be reinvested, thus compounding your investment
- Qualified dividends have a favorable tax treatment
- Some dividend stocks may pay more than bonds
- Quality Dividend stocks increase their Dividends over time - helping you beat inflation
- Dividend stocks tend to hold up better in crisis and short-term bear markets