We dividend investors have one tool in our arsenal that makes the world of a difference over time: every time a company chooses to return some of its cash to shareholders in the form of a dividend, the price of the stock can fall a little bit, and investors can still tread water. The price of the stock can fall by a lot, and the investors will not lose as much money as you might think. Or, the price of the stock may rise by quite a bit, and the dividend may boost your total returns by a greater amount than what you can see by merely looking at a stock chart.
This is something that I have been experiencing in real life with my investment in BP stock. The price of the stock has pretty much gone nowhere, but given my purchase price of around $40 per share, I … Read the rest of this article!
The post The Best Kept Secret Of The Long-Term Dividend Investor first appeared on The Conservative Income Investor.