04-24-2015, 12:29 PM
(04-24-2015, 11:48 AM)crimsonghost747 Wrote: But when the ultimate point of the portfolio is to either provide financial indepence or an additional source of revenue, I think it's important to be able to more or less predict what is going to happen. Dividends, especially from bigger stable companies, are pretty much a sure bet. If they are yielding 3%, you know you will get that 3% (or more with most DGI companies) every year for the forseeable future. That is the level of certainty I want to have if my finances will one day depend partly on that income.
Also if I were to depend on selling shares for income, it's very likely that there will come a time when the market crashes and I will be forced to sell at the bottom to pay the bills. With dividends I can always just ride out the storm, no matter how low the market falls there will always be that cash falling into my pocket... month after month.
Maybe we assume this, but to me it's the most important point and almost always ignored by others when discussing Dividend Growth investing..."The dividend MUST GROW" to make it a worthy stock to own!!! Not only is the 3% dividend foreseeable, it will more likely increase.