Dividend Investing is an excellent strategy for growing your wealth. Dividends are the regular cash payments that a company sends to you or to your brokerage account. You can, however, instruct the company or your broker to reinvest your dividends into additional shares or fractional shares.
When looking for the best dividend stocks, you can't simply pick the stocks with the highest dividends. Some consider the best dividend stocks to be the “Dividend Aristocrats”. Dividend Aristocrats are those "safe" companies that have raised their dividend rates at least once, consecutively every year, for a minimum of the previous 25 years.
Ideally, you own a dozen dividend stocks or more; the diversity brings insulation from price volatility while spreading out the timing of your dividend checks, which you can either cash or re-invest.
Dividend Investing is also great way to reduce your taxes, as dividends are taxed at a lower rate.
Cabot Benjamin Graham Value Letter is an excellent source of the best dividend paying stocks. Benjamin Graham was Warren Buffett’s teacher, and his system of value-based investing has stood the test of time.
For information on this time-tested low-risk investing system that can provide you with a steady flow of high-yield dividends, read our free special report, “Best Large-Cap Value Stocks.”
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Best Large-Cap Value Stocks
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For more information on Dividend Investing
, click on the links below:
Why Dividends are Important
History shows that dividend income is an important part of your total return when investing in common stocks.
What are Dividend Aristocrats?
Learn about what is considered the "gold standard" for dividend-generating stocks.
What is a Special Dividend?
Learn more about how dividends should play an important role in any portfolio.
Attractive Dividend Yields
Newsletter editor Roy Ward recommends one bond fund and two ETFs that offer attractive dividend yields.
If I buy a stock on the ex-dividend date, will I receive the dividend for that quarter?