Top 5 Things You Need to Know About Dividend Paying Stocks
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!
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3 comments
Also (in Canada anyways), dividends are taxed at a much lower rate than other gains.
Gotta love that!
You are right Julie! Canadian dividends are taxed lower in Canada compared to income, interest, and capital gains. Thanks for stopping by!
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