AQNU - What I Wish I Knew Before Investing In Big Dividend Stocks
2024-06-14 15:05:07 ET
Summary
- Investing in dividend stocks can be extremely rewarding. However, it is far from easy.
- I share an important dividend investing lesson from Warren Buffett.
- I also share several lessons that I wish I had learned before investing in high-yield dividend stocks.
Investing in dividend stocks, Schwab U.S. Dividend Equity ETF ( SCHD ), especially those offering high yields, can be extremely rewarding. First of all, it can lead to long-term outperformance as stocks that pay out high dividends are often backed by stable cash flows, strong balance sheets, and durable competitive advantages. Additionally, these stocks are easier to value than higher-growth businesses with much higher valuations. As a result, by complementing an intelligently diversified and selectively managed portfolio with an opportunistic capital recycling strategy, investors can generate meaningful alpha over the long term by investing in dividend stocks....
What I Wish I Knew Before Investing In Big Dividend Stocks