The cool
thing about dividend stocks is that when it comes time that you need the dividend checks to live off of you don't have to touch the underlying assets.
In our paper «A Case for Dividend Growth Strategies,» we compared dividend growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address
concerns about dividend stocks in a rising - rate environment, to some extent.
My friend Mike Hereux from the Dividend Guy blog has written a
book about dividend stocks called Dividend Growth: Freedom Through Passive Income.
That's all well and good, but that doesn't answer the question that I've heard posed around the water cooler a few times recently: If rising interest rates are ultimately a sign of a healthy economy, why are people
worried about dividend stocks falling?
Before we jump right into the dividend aristocrats, let's first understand what it is you as a dividend investor
like about dividend stocks, what is it you want?
Periodically, I will
write about dividend stocks that we purchase or own, as an example of how the dividend growth investing (DGI) strategy works, the risks that you have to deal with in pursuing the strategy and the long - term patience that DGI requires.
If we lived in a world where treasury bonds yielded 10 % and most blue - chip stocks had 2 % dividend yields and 4 % earnings yields, I'd shut the heck up
about dividend stocks and start writing about the exhilarating world of fixed income that gets everyone's juices flowin».
How did you learn
about dividend stocks?
Periodically, I will write
about dividend stocks that we purchase or own, as an example of how the dividend growth investing (DGI) strategy works, the risks that you have to deal with in pursuing the strategy and the long - term patience that DGI requires.