HOW TO GET BEST USE OF THIS BOOK AND WHAT TO LOOK FOR IN DIVIDEND COMPANIES In summary we would argue that investing in fair valued stocks with good corporate management that pay solid, consistent and growing dividends are better investments than main market stocks as a whole. Given that most investors invest in larger mainstream companies, e.g. the companies listed on the S&P 500 Index, most investors would have been better investing in dividend-paying companies. This also translates into more income over the longer term. The cash returns, either in the form of dividends or buy-backs, generated by many of the investments in particular companies, would have paid off much of the initial investment, leaving not only a portfolio of stock that is worth more, but a steady income stream you can keep for life. Generally speaking, in either a strong or weak market, companies that return cash to shareholders over the longer term are better bets than those companies that do not. They provide a greater degree of certainty and a reduction in the risk that you take when making any investment.
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