The Advantages of Dividend Paying Stocks

We believe dividend-paying stocks make the most sense for investors because...
  • Income from stock dividends is more dependable than capital gains. Dividends generally keep coming even if the stock price goes down.
  • Stocks that pay dividends are often better values because dividends are not always appreciated by investors.
  • Dividends can grow over time to keep ahead of inflation, unlike income from bonds.
  • By reinvesting your dividends, you can increase your overall return.
  • Dividends can provide a steady stream of income.

For more research on the power of dividends, we suggest you read the following document put together by Tweedy Browne:
http://www.tweedy.com/resources/library_docs/papers/highdivresearch.pdf