This is why! (image credit: dreamstime)
Most property investors will tell you that buying a property is about two things - the rental and the capital appreciation. While you correct monthly rent, the property will hopefully (if it's a great location and demand is there), the property price will go up over the years beating inflation and making a good profit when you sell it. Ta-daa capital appreciation!
So what about stocks? Everyone seems looking for the next penny stock that rockets 100-200% but does anyone actually think about stocks paying dividends.
The Numbers to Back Up
- The Extraordinary Power of Dividends - Morgan Hensel for the Motley Fool has a brilliant article on this -Read it here.
- 6 Myths on investing Dividends - Including one myth that stocks are only for older people who need income - I say its an integral addition to any portfolio! Read it here.
- Where Dividends Fit on the Financial Puzzle on FT (registration may be required)