Dividend Income is EPIC Reliability

by Brad Ferris on April 16, 2012

Dividends: Take a Licking & Keep on Ticking

Dividend paying stocks are well recognized as an investment that never stops paying you.

The advantage to dividend income is that its tax efficient, predictable and pays you to invest capital in often stable and well established businesses.

Dividend income is impressive and larger than life because it provides necessary value to an investor in all markets.

Dividend income alone won’t make you rich, but investing dividends back into your portfolio over time, along with additional capital, to buy more dividend paying stocks increases the profits you generate from your portfolio adding to the effect of compounding returns.

Sustainable dividends are even better.

Dividend Income provides an investor with EPIC RELIABILITY because the income is paid to you when you expect it time and time again.

The reason dividend investing is so successful with a simple investing approach is it immediately rewards an investor. This instant gratification is key because a new investor is the most likely to alter course, change approach and not stick with their plan. By seeing the execution of a strategy providing immediate results an investor can take confidence that they are applying the proper investing principles.

Seeing $12.00 deposited into your brokerage account every three months from an initial investment of $1,600 investment may seem insignificant, but its money you expected to see and was delivered on time.  That added value is very important.

Even when dividend cuts occur if you’re properly diversified the impact to your income should be minimal. The cut hurts, but you’ll recover through the rest of your portfolio and the long-term success of your portfolio shouldn’t be significantly impacted.

Remember, dividends are like a Timex® watch…

They can take a licking, but they’ll keep on ticking.

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