The reasons are following:
1) Earn income while I'm holding the stock for a potential gain
2) The dividend is taxed at a lower tax rate than capital gain in most case
3) Higher chance to increase my overall return of investment (dividend income + stocks appreciation)
4) More liquidate than individual cooperate bonds or municipal bonds
5) No minimum investment required for greater diversification.
Most importantly, my strategy in stock investing is: Buy and Hold. As I believe the longer you hold the stock, the less risk of losing money. Plus, frequent buy and sell will increase the chance of error. So, buying a stock with dividend income just match my strategy well.
Sunday, August 19, 2007
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2 comments:
you decide to buy dividend paying stock because you listen to the audio-little book that beat the market?
I have not finished that yet,s**t...
Keep it up! You can finish it.
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