Wednesday, September 8, 2010

The dividend approach to investing

The dividend approach to investing is not a get rich scheme. Investors who ultimately make money with dividends are interested in slow but steady returns, low volatility and positive feedback in the form of dividends during all market environments. The companies that manage to raise dividends for long periods of time are characterized by having a strong brand, and strong competitive advantages that help them increase earnings over time. Only companies that expect strong earnings in the foreseeable future will commit to raising dividends. As a result investors in dividend companies enjoy an increasing stream of dividend income, which matches or exceeds inflation over time.

http://seekingalpha.com/article/224124-five-dividend-machines-raising-distributions?source=email

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