You need to get paid to invest in this market. My favorite form of payment for you is dividends. A lot of good things come from a sound, dividend-centric approach. First, your interests are in alignment with the company—it must pay you, the investor, for buying the stock. Second, there’s a safety net of sorts since the company has to have some cash to pay you that dividend. And third the best dividend payers have a history of consistently increasing their dividend. But maybe the most important reason is that dividend payers tend to have a long track record of being in business through more than a couple of business cycles. That should provide you with some peace of mind in times like these where spending cracks are widening.
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E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at firstname.lastname@example.org.