Wednesday, October 30, 2013

Why I Like Dividend Stocks

So, it may be quite bewildering to many people regarding my equity allocation. It seems that they are all dividend payers, so why is that?

I have a strong belief that dividend payers have better adjusted risk returns and overall better performance than the other average stock over an extended period of time. Plus, the steady dividend payout indirectly lock in gains and helps with dollar cost averaging within the security.

I've just read a post from DIY Income Investor, and he links up this interesting read from Allianz regarding dividend stocks.

I think after reading this, I feel like I have a lot more conviction to enter my equity positions. Perhaps I might just do that tomorrow, after the whole FOMC settles down the market and the plays are clear. It comes in also at a pretty nice time, at the end of the month, so I can watch its full 1 month returns! Hmm, sounds good to me now. Might just execute that soon!

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