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Friday, February 13, 2015

Why dividend investment?

Very few people truly understand the value of seemingly little  amount of dividends. But for quality stocks with a long track record of paying increasing dividends such as MSFT, without your knowing it, you will end up with over 10%+ dividend yield year in and year out. Think about it, if you have a bunch of good stocks that pay you 10%+ dividends without you to work on anything when you retire, will you be really worried anymore about the fluctuations of the stock prices? Not me! This kind of money in such stocks is just like the money you save in the bank but it pays you increasing interest every year 10% or more. I don't think anyone will pay too much attention to the changing value of dollars in the bank (against gold, Euro or other currencies). You can simply think about it in this way when your money is tied up to such stocks. I just feel very sorry for them whenever someone scorns off the dividend investment strategy. You will be much richer if you spend some time to study and understand and implement this very powerful but easy investment strategy. The sooner the better. I'm just regret that I didn't realize this when I was 20s but still I feel great to see how such value investment has made me more and more rich every year without much stress. It has totally changed my mindset in watching the stock fluctuations: I feel great now when I see my value stocks prices going down as I know it will only speed up my wealth building process and pay me more with depressed prices.

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