Dividend Investing Is Not As Risky As It Is Portrayed Out To Be

There is always some risk in any decision you make in life. There are also risks in putting your hard earned money in companies who regularly increase distributions. Investing in dividend paying stocks could potentially result in the risk of permanent capital and income loss. However, the reality for the average dividend paying stock is less than grim. This is because for the price of dividend paying stock, an investor receives a junior claim to the assets of a company, along with their proportionate share of profits until the end of the world. In simple words, the most you can lose with dividend paying stocks is the amount of funds you put "at risk". However, as a dividend investor, you would likely receive dividend checks for years to come in most situations. These checks are essentially serving up as rebates on your cost, and ultimately reduce the... Read more