Thursday, October 16, 2008

Buying Stock For the Dividends

As anyone who has read my previous posts can attest, I've always promoted buying stocks based on dividend payouts and the companies' ability to continue paying the dividends. It is interesting to note that the "experts" are starting to give this same advice. Check out this article on CNBC:

Cramer: Buy Dividends on This Dow Drop
http://www.cnbc.com/id/27205368

While Cramer makes some good points about dividends being a cushion in the market downturn and yields rising as prices fall, I have always advocated buying investments that provide current income, i.e. dividends, as well as having strong possibility of future capital gains. All of the stocks recommended in Cramer's article are good stocks, but with a little effort it's possible to find much better yields than mentioned here.

No comments: