AQN - What I Learned From My Most Painful Dividend Cuts
2024-06-27 13:24:54 ET
Summary
- Dividend investing provides reliable cash flow and total returns without requiring superman-like growth or valuation multiple expansion.
- However, avoiding painful dividend cuts is crucial for successful dividend investing.
- I share the lessons I have learned from my most painful dividend cuts and how I am striving to not repeat those same mistakes moving forward.
Dividend investing ( SCHD ) is a great way to compound wealth over time, and it has served me very well. One of the biggest reasons I like it is that when you invest in a stock with a consistent dividend payout, it gives you a reliable source of cash flow and total returns. This means that these stocks don't have to generate superman-like growth or valuation multiple expansion to deliver satisfactory total returns. Moreover, such stocks are fairly easy to value, enabling me to implement an opportunistic capital recycling approach to further accelerate the compounding process over time....
What I Learned From My Most Painful Dividend Cuts