Why do dividend-paying strategies make sense?
For the dividend investor, the ‘why now’ question really is a ‘why always’ answer.
The math of dividend investing is one that works out over years, if not decades, of being a business owner through the stock market. It implies a certain degree of patience and watching the income streams come in, and more importantly watching the income streams rise over time and the value of the investment benefit as a result. Of course there’s the temptation to try to time one’s investments, whether they’re dividend-focused investments or not, but the math and the sensibility of being a business owner through the stock market really plays out over time, and that’s what we encourage our clients to do.
There are, of course, moments when dividend-paying stocks are in favour and moments in time when dividend-paying stocks are not, and we do see that effort to time the returns, but that’s a choice of the investor from the ‘manufacturing’ perspective, the business ownership perspective. It’s really more of a ‘why always’ approach.
The math of dividend investing is one that works out over years, if not decades, of being a business owner through the stock market.
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