6 Top Reasons to Buy Dividend Stocks

Dividend investing is popular for many reasons. Here are six.

Outperformance

Studies have shown that dividend stocks have tended to outperform non-dividend payers. Dividend stocks that grow their dividends have performed even better.

One reason may be that dividend companies have less capital to work with after paying out some of their earnings as dividends. So, these companies have been more careful with where they invest their remaining capital.  Read More…

This article has 9 Comments

  1. Javonte

    To be honest way too many people keep suggesting and having Telus in their portfolio solely because of the dividend payouts. Ok yes they have been very consistent but there are other descent telecoms out there too.

  2. Gino Coe

    I'm curious. Do all companies move from growth to eventually settle into a dividend income company? To me, it seems like when a company has reached a pincale where they can't see any further growth they will stop innovating and just spread the profits to shareholders.

  3. Camron S.

    Just went through all 6 and nice to see my knowledge of investing is still pretty descent — i knew about all six already.

  4. Francesco K.

    I guess it all depends on how much one can put into these types of stocks. I dont have much to invest.

  5. Briley

    My fear with dividend stocks is that the companies have less motivation to grow and so might even retract over time.

  6. Dennis

    Most don't understand (or refuse to) that dividend stocks are about holding for the long-term. Most get cold feet when they see stocks drop and then forget that it was a divdend one and sell right away. smh

  7. Jelani C.

    There was a time when banks were giving 4.5% routinely. So Telus at 4.5%, although very good, just brings back memories.

  8. Jamal

    But i still don't understand why companies give out dividends at all. Is it for tax purposes (make them pay less)? Why not keep it in the coffers and wait for new opportunities?

  9. Xylon Sweers

    thats the first time ive heard that they tend to outperform non payers. Is that over a 10-year span?

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